The Returns on Your Portfolio Over the Last 5 Years

question 31

Multiple Choice

The returns on your portfolio over the last 5 years were -5%,20%,0%,10% and 5%. What is the arithmetic average return?

• A) 5.0%
• B) 6.0%
• C) 7.5%
• D) 8.0%
• E) 10.0%

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Definitions:

John Maynard Keynes

An influential British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Expansionary Gap

A situation where actual output in an economy exceeds the potential output, leading to inflationary pressures due to high demand.

Government Spending

The total amount of money that a government allocates and uses on public services and infrastructure.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the actual value of goods and services produced.