Consider an Investment Held Over Three Years with a Return

question 21

Multiple Choice

Consider an investment held over three years with a return of +20 percent in the first year,−25 percent in the second year,and +20 percent in the third year.What is the arithmetic mean return on the investment?

• A)−2.6%
• B)+2.6%
• C)+5.0%
• D)+8.0%

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Definitions:

Carbon-to-hydrogen

The ratio of carbon atoms to hydrogen atoms in a molecule.

Carbon-to-oxygen

A ratio that compares the amount of carbon atoms to oxygen atoms in a molecule or compound.

Enzymatic Addition

A process by which enzymes facilitate the addition of certain groups to molecules, altering their function or activity.

Large Molecules

Macromolecules formed by the joining of smaller molecules, often complex structures essential for life, like proteins, nucleic acids, carbohydrates, and lipids.