Even though the simple arithmetic average does not consider compounding,it is useful for determining the average return for a group of investments at one point in time.

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Quizplus · Accepted Answer

The statement is true. The simple arithmetic average is useful for determining the average return for a group of investments at one point in time. It may not consider compounding, but it gives a quick and easy way to compare the performance of different investments.

Even Though the Simple Arithmetic Average Does Not Consider Compounding,it