Because the Simple Arithmetic Return Does Not Consider Compounding,its Value

question 43

True/False

Because the simple arithmetic return does not consider compounding,its value will always be less than the geometric average return,unless the annual rates of return are constant.

---

Definitions:

Education Level

Refers to the highest degree or level of school completed by an individual, often used as a measure in demographic studies and analyses of social outcomes.

Intergenerational Mobility

Movement between social classes that occurs from one generation to the next.

Professional Field

A specified area of expertise or work in which individuals engage, often requiring specialized education or training.

Working-Class Parents

Parents who are part of the working class, typically engaging in manual labor or low-paying jobs, and who face specific socioeconomic challenges and cultural experiences in relation to parenting.