What Is the Geometric Average Return Over One Year If

question 72

Multiple Choice

What is the geometric average return over one year if the quarterly returns are 8%,9%,5%,and 12%,respectively?

• A) 8.00%
• B) 8.33 %
• C) 8.47%
• D) 8.50 %

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Definitions:

Ethical Problem

A dilemma or situation that requires a decision to be made that involves questioning the morality of the actions or choices.

Business Decision Maker

An individual or group within an organization responsible for making strategic and operational decisions.

Long-run Profit Maximization

A strategy where a firm seeks to achieve the highest possible profit over a prolonged period, considering both current and future potential changes in market conditions.

Unethically

Behaving in a manner that is contrary to accepted moral norms or professional standards.