Suppose That an Investment Gave a Realised Return of 20

question 85

Multiple Choice

Suppose that an investment gave a realised return of 20% over a two-year time period and a 10% return over the third year. The geometric average annual return is

• A)9.70%.
• B)14.96%.
• C)16.55%.
• D)11.20%.

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Definitions:

Common Cold

A viral infection of the upper respiratory tract, which affects the nose, throat, and sinuses, leading to symptoms like sneezing, coughing, and a runny nose.

Influenza

A highly contagious viral infection of the respiratory passages causing fever, severe aching, and catarrh, often occurring in epidemics.

Allergy

A hypersensitive immune response to a substance that is normally harmless to most people, such as pollen, food, or dust mites.

Sudden Onset

Refers to the rapid development of symptoms or conditions, often without warning.