Suppose a Particular Investment Earns an Arithmetic Return of 10

question 1

Multiple Choice

Suppose a particular investment earns an arithmetic return of 10% in year 1, 20% in year 2, and 30% in year 3. The geometric average return for the period will be

• A) greater than the arithmetic average return.
• B) equal to the arithmetic average return.
• C) less than the arithmetic average return.
• D) equal to the market return.
• E) It cannot be determined from the information given.

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Definitions:

Technoscience

refers to a field of study that intertwines science and technology, focusing on their co-evolution and the impact of their intertwining on society.

Decentering

A process of shifting away from a Eurocentric or ethnocentric perspective, recognizing the diversity of viewpoints and experiences.

Antiessentialism

The belief that identities or phenomena are not fixed, inherent, or reducible to some core essence but rather constructed through social, cultural, and historical contexts.

Radical Constructionism

An epistemological viewpoint that suggests knowledge and reality are actively constructed by social or cognitive processes.