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%

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
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ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
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Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
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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 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%

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