The Return Earned in an Average Year Over a Multiyear

question 77

Multiple Choice

The return earned in an average year over a multiyear period is called the ________ average return.

• A) arithmetic
• B) standard
• C) variant
• D) geometric
• E) real

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Definitions:

Temporizing Heuristic

A cognitive strategy involving delaying decision making until more evidence or information is available.

Successful Events

Occurrences or activities that achieve their intended goals or are considered positive by the majority of participants.

Past Failures

Previous instances of not achieving desired or intended outcomes, serving as lessons for future endeavors.

System-1 Thinking

A fast, automatic, and often emotional way of thinking, as described by psychologist Daniel Kahneman.