What Is the Geometric Average Return of the Following Quarterly

question 9

Multiple Choice

What is the geometric average return of the following quarterly returns: 3%,5%,4%,and 7%,respectively?

• A) 3.72%
• B) 4.23%
• C) 4.74%
• D) 4.90%

---

Definitions:

Weighted Average Model

A calculation that assigns different weights to different items or data points according to their importance in achieving a more accurate average.

Forecasts

Predictions or estimates of future events or trends, based on analysis of available data and indicators.

Mean Absolute Deviation

A statistical metric that measures the average distance between each data point and the mean of a data set, demonstrating variability.

Weighted Average Model

A calculation model that assigns varying degrees of importance or weights to different data points or variables when computing an average.