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:

Light Waves

Electromagnetic waves visible to the human eye, responsible for the sense of sight.

Iris

The colored part of the eye surrounding the pupil, controlling the amount of light that enters the eye by adjusting the size of the pupil.

Lens

In the context of optics, a piece of transparent material that bends or refracts light rays to form an image; not a psychological term.

Myopia

A common vision condition also known as nearsightedness, where distant objects appear blurry while close ones can be seen clearly.