Question 46

Over the past 4 years an investment returned 8%, 25%, 10%, and 15%. The compound annual return was

a. 14.3%

b. 14.5%

c. 15.1%

d. 15.5%

4 points

Question 47

Over the past 4 years an investment returned 8%, -25%, 10%, and -15%. The compound annual return was

a. 9.1%

b. 7.3%

c. 3.5%

d. 5.6%

4 points

Question 48

The geometric mean is

a. always greater than the arithmetic mean.

b. Always greater than or equal to the arithmetic mean.

c. Always less than the arithmetic mean.

d. Always less than or equal to the arithmetic mean.

4 points

Question 49

The Sharpe measure related return to _____ risk.

a. market

b. total

c. unsystematic

d. business

4 points

Question 50

The denominator of the Treynor performance measure is

a. sigma.

b. delta.

c. the variance.

d. beta.