Q772
In order to settle on compound growth rate of an investment over period, an investor determine the
A.
geometric mean
AnswerB.
calculus mean
C.
arithmetic mean
D.
arithmetic median
Answer: Option A
Solution
Answer: Option A
Solution:
In order to settle on compound growth rate of an investment over period, an investor determine 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. It is technically defined as "the nth root product of n numbers."