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%
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)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 7FPE
Related questions
Question
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
The geometric average equals the arithmetic average
The returns are positively skewed
The standard deviation of returns is equal to 10%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning