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To Annualize a Two-Year Holding-Period-Return, You Need to Assume That

Question 49

Multiple Choice

To annualize a two-year holding-period-return, you need to assume that:


A) All cash receipts in the first year are ignored in the calculation
B) All cash receipts in the first year are reinvested
C) The arithmetic average will be smaller than the geometric average
D) There are no outliners in the returns
E) Nothing

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