Consider an Investment Held Over Three Years with a Return

question 16

Multiple Choice

Consider an investment held over three years with a return of +20 percent in the first year, ?25 percent in the second year, and +20 percent in the third year. What is the arithmetic mean return on the investment?

• A) -2.6%
• B) +2.6%
• C) +5.0%
• D) +8.0%
• E) Cannot be calculated from the information provided

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Definitions:

Genotype-environment Correlations

Refers to the association between the genetic makeup of an individual and the environment in which they live, affecting their traits and behaviors.

Biological Parents

The individuals from whom one inherits genetic material, typically referred to as birth parents.

Rearing Environment

Refers to the conditions and context in which an organism is raised, impacting its development and behavior.

In Vitro Fertilization

A medical procedure where an egg is fertilized by sperm outside the body, in a laboratory.