The compound or geometric average return is always a) GREATER than or EQUAL to the arithmetic...

Question

Question

The compound or geometric average return is always a) GREATER than or EQUAL to the arithmetic...

The compound or geometric average return is always

a) GREATER than or EQUAL to the arithmetic average return.

b) LESS than or EQUAL to the arithmetic average return.

c) GREATER than the arithmetic average return.

d) LESS than the arithmetic average return.

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

CPlease find below the solution… let me know if you need any clarification.

Correct answer is option : a) GREATER than or EQUAL to the arithmetic average return.

Add a comment

Answer 2

Similar Homework Help Questions

Arithmetic returns are always greater than geometric returns. Select one: True False

Arithmetic returns are always greater than geometric returns. Select one: True False
Which of the following statement regarding the arithmetic mean and geometric mean is true? a) Arithmetic...

Which of the following statement regarding the arithmetic mean and geometric mean is true? a) Arithmetic mean is always a better measure of average performance. b) Geometric mean is never a better measure of average performance. c) Arithmetic mean is always a better measure of performance over single periods. d) Geometric mean is the best estimate of the expected return for the next period.
(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle...

(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle Company had the following end-of-year stock prices over the last five years and paid no cash dividends: Time Brangus cattle Comapny $15 11 24 28 a. Calculate the annual rate of return for each year from the above information b. What is the arithmetic average rate of return earned by investing in Brangus Cattle Company's stock over this period? c. What is the geometric...

calculate the arithmetic average return and the geometric average return using the following returns 2011 +7.6%...

calculate the arithmetic average return and the geometric average return using the following returns 2011 +7.6% 2012 -4.2% 2013 +7.6% 2014 -1.8%
You have found an asset with an arithmetic average return of 13.40 percent and a geometric...

You have found an asset with an arithmetic average return of 13.40 percent and a geometric average return of 10.40 percent. Your observation period is 30 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
You have found an asset with an arithmetic average return of 12.80 percent and a geometric...

You have found an asset with an arithmetic average return of 12.80 percent and a geometric average return of 10.28 percent. Your observation period is 40 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)

You have found an asset with an arithmetic average return of 14.00 percent and a geometric...

You have found an asset with an arithmetic average return of 14.00 percent and a geometric average return of 10.52 percent. Your observation period is 50 years. What is your best estimate of the return of the asset over the next 5 years? 10 years? 20 years? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) Estimated Return 5 years % 10 years % 20 years %
6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent....

6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent. Using Blume's formula, what is your best estimate of the future annual returns over the next 10 years? A) 11.84 percent B) 13.04 percent C) 12.46 percent D) 11.18 percent E) 12.91 percent 6 7) Which one of the following statements is correct based on the period 1926-2016? A) The standard deviation of the annual rate of inflation was...
Tell whether the pH at equivalence point is less than 7, greater than 7 or equal...

Tell whether the pH at equivalence point is less than 7, greater than 7 or equal to 7 for each of the following solutions. PLEASE SHOW WORK IF POSSIBLE OR EXPLAINATION; Thank you so much! 12. 0.1M acetic acid with 90.10M NaOH a). Greater than 7 b.) Equal to 7 c.) Less than 7 d.) Equal to 14 e.) Don't Know 13. 0.050M formic acid (HCOOH) with 0.0930M NaOH a.) Greater than 7 b.) Less than 7 c.) Equal to...

The value of Rf is: a. greater than or equal to one b. less than or...

The value of Rf is: a. greater than or equal to one b. less than or equal to zero c. less than or equal to one d. none of the above Explain

The compound or geometric average return is always a) GREATER than or EQUAL to the arithmetic...

Homework Answers

Add Answer to:
The compound or geometric average return is always a) GREATER than or EQUAL to the arithmetic...

Post as a guest

Earn Coins

Arithmetic returns are always greater than geometric returns. Select one: True False

Which of the following statement regarding the arithmetic mean and geometric mean is true? a) Arithmetic...

(Calculating the geometric and arithmetic average rate of return) The common stock of the Brangus Cattle...

calculate the arithmetic average return and the geometric average return using the following returns 2011 +7.6%...

You have found an asset with an arithmetic average return of 13.40 percent and a geometric...

You have found an asset with an arithmetic average return of 12.80 percent and a geometric...

You have found an asset with an arithmetic average return of 14.00 percent and a geometric...

6) Over a 25-year period an asset had an arithmetic return of 13.1 percent and a geometric return of 12.6 percent....

Tell whether the pH at equivalence point is less than 7, greater than 7 or equal...

The value of Rf is: a. greater than or equal to one b. less than or...

The compound or geometric average return is always a) GREATER than or EQUAL to the arithmetic...

Homework Answers

Add Answer to: The compound or geometric average return is always a) GREATER than or EQUAL to the arithmetic...

Post as a guest

Earn Coins

Add Answer to:
The compound or geometric average return is always a) GREATER than or EQUAL to the arithmetic...