The Value Line Index Is an Equally-Weighted Geometric Average of the Returns

question 53

Multiple Choice

The Value Line Index is an equally-weighted geometric average of the returns of about 1,700 firms. The value of an index based on the geometric average returns of three stocks where the returns on the three stocks during a given period were 32%, 5%, and −10%, respectively, is

• A) 4.3%.
• B) 7.6%.
• C) 9.0%.
• D) 13.4%.
• E) 5.0%.

---

Definitions:

Constrained Power

The limitation of authority or control to prevent abuse and ensure it is used responsibly and justly.

Gender

Social and cultural distinctions associated with being male, female, or non-binary, as opposed to biological differences.

Family

A social group typically consisting of parents and children living together or related by bloodlines, recognized by society as a fundamental unit.

Critic

An individual who expresses judgments or opinions on the merits and faults of artistic, literary, or musical works, or the actions or decisions of individuals or organizations.