A Portfolio Manager Generates a 5% Return in 2008,a 12

question 119

Multiple Choice

A portfolio manager generates a 5% return in 2008,a 12% return in 2009,a negative 6% return in 2010,and a return of 2% (non-annualized) in the first quarter of 2011.The annualized return for the entire period is closest to:

• A)3.05%
• B)3.25%
• C)3.50%
• D)3.77%

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Definitions:

Economic Stabilization

Governmental efforts to reduce the amplitude of economic cycles, aiming to achieve stable growth, low inflation, and reduced unemployment.

Policy Activists

Individuals or groups advocating for changes in public policy to advance particular goals or interests.

Non-Interventionists

Individuals or policies favoring minimal diplomatic and military involvement by a country in the affairs of other nations.

Monetarists

Economists who emphasize the role of governments in controlling the amount of money in circulation to regulate the economy and control inflation.