13. The difference between an arithmetic average and a geometric average of returns a. Increases as the

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13. The difference between an arithmetic average and a geometric average of returns

a. Increases as the variability of the returns increases.

b. Increases as the variability of the returns decreases.

c. Is always negative.

d. Depends on the specific returns being averaged, but is not necessarily sensitive to their variability.

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Investments

ISBN: 9780077261450

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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