The Geometric Average Annual Return for a Large Capitalisation Share

question 20

Multiple Choice

The geometric average annual return for a large capitalisation share 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)9.11%.
• B)9.95%.
• C)9.62%.
• D)10.23%.

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Definitions:

Strict Parents

caregivers who enforce rigid rules and expect high levels of obedience and discipline from their children.

Tempted

The feeling or state of being enticed or inclined to do something, often something unwise or wrong.

Entity Theorists

Individuals who believe that traits such as intelligence and talent are fixed and cannot significantly change.

Incremental Theorists

Individuals who believe that personal attributes, such as intelligence or character, can be developed through effort and perseverance.