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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