The average compound return earned per year over a multiyear period is called the ________ average return.
A)real
B)standard
C)arithmetic
D)variant
E)geometric

Question

Quizplus · Accepted Answer

The average compound return earned per year over a multiyear period is best represented by the geometric average return, which takes into account the compounding effect of returns. The other options, such as real, standard, and arithmetic average returns, do not account for the compounding effect and are less precise measures of performance. The option of "variant" is not a recognized term in finance.

The Average Compound Return Earned Per Year Over a Multiyear