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

---

Definitions:

Mixing Machines

Equipment used in manufacturing and baking industries to blend or mix ingredients into a homogeneous substance.

Variable Cost

Costs that vary directly with the level of production output, such as materials and labor, in contrast with fixed costs, which remain constant regardless of output.

Unit Product Costs

The total cost (including materials, labor, and overhead) to produce one unit of a product.

Predetermined Overhead Rate

An established rate used to assign overhead costs to products or job orders, calculated in advance based on anticipated costs and activities.