A Portfolio Manager Generates a 5% Return in Year 1

question 103

Multiple Choice

A portfolio manager generates a 5% return in Year 1, a 12% return in Year 2, a negative 6% return in Year 3, and a return of 2% in Year 4. The annualized return for the entire period is the closest to ________.

• A) 3.05%
• B) 3.25%
• C) 3.50%
• D) 3.77%

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Definitions:

Self-Confidence

A belief in one's own abilities or competence.

Leadership Characteristic

Traits or qualities associated with effective leaders, including integrity, accountability, empathy, and the ability to inspire others.

Leadership Setting

The environment or context within which leadership is exercised, often determining the style and effectiveness of the leadership.

Personalized Power Motive

An individual's drive to influence others and control their environment for personal gain or satisfaction.