The mean return computed by finding the equivalent return that is compounded for N periods is ________.
A) dollar return
B) geometric returns
C) average return
D) percentage return

Question

Quizplus · Accepted Answer

The mean return computed by finding the equivalent return that is compounded for N periods is referred to as geometric returns. This method accounts for the compounding effect over multiple periods, unlike simple average returns.

The Mean Return Computed by Finding the Equivalent Return That