Respuesta :
Geometric average return is defined as the average compound return earned per year over multiyear period. The correct answer is A.
What does the geometric mean in terms of finance?
The geometric mean, which is determined by multiplying n variables and then taking the nth -root, reflects the average growth of an investment. In other words, it is a metric used to evaluate the success of a single investment or an investment portfolio. It is the average return on an investment over time.
The geometric average is used for what purpose?
The phrase used in finance to calculate average growth rates is the compound annual growth rate, also referred to as the geometric mean. Consider a stock that makes 10% in its first year, 20% in its second year, and 30% in its third.
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