Examlex
For each of the following separate cases,use the information provided to calculate the missing cash inflow or cash outflow using the direct method.
Geometric Average Return
The average rate of return on an investment that is compounded over multiple periods, considering the compounding effect.
Compounding
The process where the value of an investment increases because the earnings on an investment, both capital gains and interest, earn interest as time passes.
Dollar-Weighted Returns
A technique for determining the yield of an investment by considering both the magnitude and timing of the cash inflows and outflows associated with it.
Geometric Returns
The average rate of return per period on an investment, calculated by compounding the returns over time.
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