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Basic Question 1 of 15

Which return measure accounts for the compounding of returns?

A. Arithmetic mean
B. Geometric mean
C. Holding period return

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

calculate and interpret major return measures and describe their appropriate uses;

compare the money-weighted and time-weighted rates of return and evaluate the performance of portfolios based on these measures;

CFA® 2024 Level I Curriculum, Volume 5, Module 62.