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 %

---

Definitions:

Bond Interest Expense

The cost associated with borrowing money through bond issuance, representing the interest payments made to bondholders.

Income Statement

A financial document listing revenues and expenses, showing the profit or loss of a business over a specified period.

Straight-Line Amortization

A method of amortizing a bond discount or premium on a linear basis over the life of the bond or another asset.

Carrying Value

The book value of an asset or liability on a company's balance sheet, calculated as the original cost minus any depreciation, amortization, or impairment costs.