The Geometric Average Annual Return for a Large Capitalization Stock

question 43

Multiple Choice

The geometric average annual return for a large capitalization stock portfolio is 12% for ten years and 5% per year for the next five years.The geometric average annual return for the entire 15-year period is:

• A)9.95%
• B)9.62%
• C)9.11%
• D)10.23%
• E)10.97%

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Definitions:

Implicit Leadership

The theory that people have inherent beliefs and expectations about the qualities and behaviors that make an effective leader.

Organizational Leader

An individual who holds a position of authority within an organization and is responsible for decision-making and strategic direction.

Personal Assumptions

The presuppositions or beliefs one holds as true without empirical evidence, often influencing how they interpret situations and make decisions.

Position Power

The authority and influence a person possesses within an organization due to the rank or role they hold.