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If You Want to Estimate the Most Likely Return on Your

Question 88

Multiple Choice

If you want to estimate the most likely return on your investment for the next year,you should use the ___________ based on past data because ____________.


A) geometric average;the arithmetic average will be biased upward.
B) geometric average;the arithmetic average will be biased downward.
C) arithmetic average;the geometric average will be biased upward.
D) arithmetic average;the geometric average will be biased downward.
E) geometric average or the arithmetic average;they are both good measures of return.

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