Q117
In order to determine the compound growth rate of an investment over some period, an investor would calculate the_____________.
A.
arithmetic mean
B.
geometric mean
AnswerC.
calculus mean
D.
arithmetic median
Answer: Option B
Solution
Answer: Option B
Solution:
In order to determine the compound growth rate of an investment over some period, an investor would calculate the geometric mean. The geometric mean is the average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio.