Portfolio Returns Can Be Calculated as the Geometric Mean of the Returns

question 39

True/False

Portfolio returns can be calculated as the geometric mean of the returns on the individual assets in the portfolio.

---

Definitions:

Sales

The total revenue generated from goods or services sold by a company during a specific period, indicating the primary source of business income.

Cost Of Goods Sold

Direct spending on materials and labor required to produce the merchandise a company sells.

Operating Expenses

The costs associated with the day-to-day activities of a business, excluding costs directly tied to the production of goods or services, such as rent, utilities, and salaries.

Merchandising Company

A business that purchases finished goods for resale in order to earn a profit, without transforming these goods.