The Gale Market Index Fund advertises that it earned a 392% return.This is probably its
A)cumulative total return over some number of years.
B)average annual total return over some number of years.
C)total return for the previous year.
D)return in relation to the overall market.

Question

Quizplus · Accepted Answer

A return of 392% is an unusually high rate of return, and it is unlikely to represent a single year of investment performance. Instead, it is more likely that the 392% return represents the cumulative total return over some number of years, possibly a decade or more.

The Gale Market Index Fund Advertises That It Earned a 392