Your Timing Was Good Last Year

question 42

Multiple Choice

Your timing was good last year.You invested more in your portfolio right before prices went up and you sold right before prices went down.In calculating historical performance measures which one of the following will be the largest?

• A) Dollar weighted return
• B) Geometric average return
• C) Arithmetic average return
• D) Mean holding period return

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Definitions:

Repudiated Contract

This term refers to a contract that has been rejected or declared void by one of the parties involved, indicating they do not intend to fulfill their contractual obligations.

Liquidated Damages

A contractual provision that determines in advance the amount of damages to be paid if a party breaches the agreement.

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious conduct.

Illegal Penalty

A punishment or consequence for an action that is not legally authorized or that exceeds the bounds set by legal statutes.