Returns Measures

  • [a] Calculate return measures. Describe situation where they are appropriate.
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Terms covered: Holding period return, Arithmetic mean, Geometric mean, MWRR, Real return

Interactive Practice: Choosing the Right Return Measure

Test your understanding! Select a scenario below, read the details, and choose the most appropriate return measure before checking the answer and analysis.

Scenario Details

Data:

Which return measure is MOST appropriate for this scenario?




Analysis & Results

Most Appropriate Measure:

Calculated Returns:

Interpretation: