Average Rate of Return Equals Average Investment Divided by Estimated

question 165

True/False

Average rate of return equals average investment divided by estimated average annual income.

---

Definitions:

Mental Accounting

The tendency of individuals to allocate and segregate their personal finances into separate accounts based on subjective criteria, often leading to irrational financial decision-making.

Technical Trading Strategies

Methods used by traders that rely on technical analysis and market indicators to make buy or sell decisions.

True Trend

The authentic direction in which a market or a stock's price is moving over a specific time period.

Moving Average

A statistical measure that smooths out price data by creating a constantly updated average price over a specific period of time.