Zero volatility in returns results in identical arithmetic and geometric returns.

Name: Zero volatility in returns results in identical arithmetic and geometric returns.
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Question

Quizplus · Accepted Answer

The statement is true.The greater the difference between the returns,the higher the level of volatility in the returns.In contrast,under a situation where returns are constant,the geometric and arithmetic returns will be equal.

Zero Volatility in Returns Results in Identical Arithmetic and Geometric