The constant return used to forecast future wealth based on actual time periods and their returns is the ____________.
A)Grouped mean
B)Geometric mean
C)Weighted mean
D)Arithmetic mean

Question

Quizplus · Accepted Answer

The geometric mean is the appropriate measure to use when calculating the average return over multiple time periods. It takes compounding into account and is more accurate when dealing with investment returns. The other options are not appropriate for this purpose.

The Constant Return Used to Forecast Future Wealth Based on Actual