Estimates of the Rate of Return on a Security Based

question 91

Multiple Choice

Estimates of the rate of return on a security based on a historical arithmetic average will probably tend to _____ the expected return for the long-term and estimates using the historical geometric average will probably tend to _____ the expected return for the short-term.

• A)overestimate; overestimate
• B)overestimate; underestimate
• C)underestimate; overestimate
• D)underestimate; underestimate
• E)accurately; accurately

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Definitions:

Partially Forms

Entities or compounds that are not fully developed or completely produced in a chemical process.

Electrolytes

Substances that dissociate into ions in solution, capable of conducting electricity.

Electrolytes

Substances that dissolve in water to produce a solution that conducts electricity due to the movement of ions.

Electrolytes

Substances that produce an electrically conducting solution when dissolved in a polar solvent, like water, essential for bodily functions.