Consider an Investment Held Over Three Years with a Return

question 9

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 geometric mean return on the investment?

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

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Definitions:

Placebo

An inert or non-active treatment given to a participant in an experiment, used to measure the effect of the treatment being tested.

Barbiturates

A class of drugs that act as central nervous system depressants, often used for their sedative and hypnotic properties.

Deadly Effects

Refers to the harmful outcomes or mortal impacts that can result from certain actions, substances, or situations.

Barbiturates

A class of drugs that are used as sedatives and hypnotics, which can depress the central nervous system.