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    Principles of Finance
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    Exam 16: Investment and Securities
  5. Question
    The Simple Arithmetic Average Return Differs from the Geometric Average
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The Simple Arithmetic Average Return Differs from the Geometric Average

Question 92

Question 92

True/False

The simple arithmetic average return differs from the geometric average return in that the geometric average takes into consideration compounding,or reinvestment,while the arithmetic average does not.

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