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love history [14]
3 years ago
5

The geometric average return answers the question What was your return in an average year over a particular period?

Business
1 answer:
Andreyy893 years ago
6 0

Answer: A. What was your average compounded return per year over a particular period?

Explanation:

Geometric return is calculated by the formula;

= [(1 + r1) * (1 + r2) * (1 + r3) *.... (1 + rn)] ^1/n

This allows for one to calculate the compounding effect over a period of time by showing the compounded annual growth rate which means that it tells what the average compounded return was per year in a particular period.

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