What Is(are) Characteristic(s) of the Geometric Mean

question 127

Multiple Choice

What is(are) characteristic(s) of the geometric mean?

• A) It is always greater than the arithmetic mean.
• B) It is the mathematical equivalent to the median.
• C) It is always less than or equal to the arithmetic mean.
• D) Both it is the mathematical equivalent to the median and it is always less than or equal to the arithmetic mean.

---

Definitions:

Pure Play Method

A valuation method that compares a company to others within the same industry or sector with a single focus or product line.

Firm's Cost of Capital

The minimum return that a company must earn on its investments to maintain its market value and satisfy its creditors and investors.

Specific Division

A distinct business unit within a larger organization, often focused on a particular product line or market segment.

Risk Averse Manager

A manager who prioritizes minimizing risks in decision-making and strategy, favoring safer investments with potentially lower returns.