The Geometric Average Return of 8,12,2,and 16 Per Cent Is $\times$

question 14

Multiple Choice

The geometric average return of 8,12,2,and 16 per cent is computed as:

• A)(1.08 + 1.12 + 1.02 + 1.16)^1/2 - 1
• B)(1.08 + 1.12 + 1.02 + 1.16)^1/4
• C)(1.08 \(\times\) 1.12 \(\times\) 1.0 \(\times\) 1.16) \(\times\) 4 - 1
• D)(1.08 + 1.12 + 1.02 + 1.16) \(\times\) 1/2
• E)(1.08 \(\times\) 1.12 \(\times\) 1.02 \(\times\) 1.16)^1/4 - 1

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Definitions:

Self-medicating

The practice of using drugs, alcohol, or other substances to treat one's ailments without professional guidance, which can lead to misuse and health problems.

Expected Loss

The anticipated amount of loss a firm envisages, often calculated in financial contexts to assess risk or in insurance settings.

Safety Equipment

Tools or devices designed to prevent accidents, injuries, or harm in various environments, including workplaces and public spaces.

Probability

The determination of an event's likelihood, represented numerically from 0 to 1.