Monique invested in a mutual fund 5 years ago. Her nominal returns were exactly 10% every year over that five-year period, while inflation averaged 2%. Which of the following statements regarding average returns and standard deviation is most accurate? Group of answer choices: The real return on her investment is 10% The geometric average equals the arithmetic average The returns are positively skewed The standard deviation of returns is equal to 10%
Monique invested in a mutual fund 5 years ago. Her nominal returns were exactly 10% every year over that five-year period, while inflation averaged 2%. Which of the following statements regarding average returns and standard deviation is most accurate? Group of answer choices: The real return on her investment is 10% The geometric average equals the arithmetic average The returns are positively skewed The standard deviation of returns is equal to 10%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Monique invested in a mutual fund 5 years ago. Her nominal returns were exactly 10% every year over that five-year period, while inflation averaged 2%. Which of the following statements regarding average returns and standard deviation is most accurate?
Group of answer choices:
The real
The geometric average equals the arithmetic average
The returns are positively skewed
The standard deviation of returns is equal to 10%
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