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Examveda

In order to determine the compound growth rate of an investment over some period, an investor would calculate the_____________.

A. arithmetic mean

B. geometric mean

C. calculus mean

D. arithmetic median

Answer: Option B

Solution(By Examveda Team)

In order to determine the compound growth rate of an investment over some period, an investor would calculate the geometric mean. The geometric mean is the average of a set of products, the calculation of which is commonly used to determine the performance results of an investment or portfolio.

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