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%.

---

Definitions:

Domestic Price

Domestic price is the price of a good or service within a country, influenced by local supply and demand conditions, taxes, and subsidies.

Exports and Imports

involve the selling of goods and services to other countries (exports) and buying goods and services from other countries (imports), crucial components of a country's economy.

Frederic Bastiat

Frederic Bastiat was a French economist and writer known for his advocacy of free markets and critique of protectionism, best remembered for his works such as "The Law" and "Economic Sophisms."

Standard of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.