Question

Question 6 (1 point)

The average compound return earned per year over a multiyear period is called the _____ average return

Question 6 options:

	Arithmetic
	Geometric
	Standard
	Variant
	Real

Question 7 (1 point)

The average compound return earned per year over a multiyear period is called the _____ average return

Question 7 options:

	Variant
	Geometric
	Arithmetic
	Real
	Standard

Question 8 (1 point)

The return earned in an average year over a multiyear period is called the _____ average return.

Question 8 options:

	Real
	Standard
	Arithmetic
	Variant
	Geometric

Question 9 (1 point)

Which one of the following categories of securities had the lowest average risk premium for the period 1926-2013?

Question 9 options:

	U.S. Treasury bills
	Long-term corporate bonds
	Large-company stocks
	Small company stocks
	Long-term government bonds

Answer 1

6)

Geometric Average Return

Geometic Average return is also called compounded annual growth rate. It also includes the compounding factor while calculating the average return over the years

7)

Geometric Average Returns

Geometic Average return is also called compounded annual growth rate. It also includes the compounding factor while calculating the average return over the year

8)

Arithmetic Average Return

Arithmetic return is simply calcualted as the average of given returns over the years

9)

U.S Treasury bills

Treasury bills will be issued by government of U.S. Since these are backed by the U.S government, there will be no risk of default on this bills and so the lowest average risk premium