For a Portfolio, the Returns for 4 Quarters Are 2

question 13

Multiple Choice

For a portfolio, the returns for 4 quarters are 2%, -4%, -2%, 10%. The annual return that is more accurate than adding the four values together is

• A) -3.2%.
• B) 6.3%.
• C) 6.5%.
• D) 5.6%.

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Definitions:

Isoquant

A curve that represents all the combinations of inputs that produce the same level of output in production theory.

Indeterminate

A state or outcome that cannot be predicted or decisively determined due to insufficient information.

Isocost Line

A graph representing all combinations of inputs that can be purchased with a given total cost.

Isoquant

A curve that represents all combinations of production factors that result in the production of a given level of output, in production theory.