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

Question

Quizplus · Accepted Answer

The average compound return earned per year over a multi-year period is called the geometric average return. This is because it takes into account the compounding effect of returns over time, which the arithmetic average does not. The other options (real, standard, variant) are not specific types of average returns.

The Average Compound Return Earned Per Year Over a Multi-Year