PRMIA Exam 8007 Topic 1 Question 59 Discussion

Actual exam question for PRMIA's 8007 exam

Question #: 59
Topic #: 1

[All 8007 Questions]

Consider an investment fund with the following annual return rates over 8 years: +6%, -6%, +12%, -12%, +3%, -3%, +9%, -9% .

What can you say about the annual geometric and arithmetic mean returns of this investment fund?

AThe arithmetic mean return is zero and the geometric mean return is negative

BThe arithmetic mean return is negative and the geometric mean return is zero

CThe arithmetic mean return is equal to the geometric mean return

DNone of the above

Show Suggested Answer

Suggested Answer: D

by Rhea at Sep 01, 2023, 07:56 PM

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