CFA Practice Question

There are 294 practice questions for this study session.

CFA Practice Question

Which return measure reflects a constant dollar investment at the beginning of each time period?
A. Arithmetic mean
B. Geometric mean
C. Holding period return
Explanation: The geometric mean reflects a buy-and-hold strategy.

User Contributed Comments 1

User Comment
Mikehuynh Arithmetic mean:
- constant $ investment at the beginning of each time period
- no compounding effect
- > geometric mean, only equal if the time periods are the same
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