Reference no: EM132672525

Problem 1: To overcome the limitations of HPR what kind of standardized measure is used as a default measure of ROI?

Option 1: Daily return

Option 2: Weekly return

Option 3: Monthly return

Option 4: Annualized return

Problem 2: In dealing with the price data and returns data of an asset over time i..e. historical data, what is an appropriate measure of AVG return?

Option 1: Arithmetic AVG

Option 2: Geometric AVG

Option 3: Weighted AVG (WAVG)

Option 4: Simple AVG

Problem 3: Under what circumstance is it appropriate to use geometric AVG?

Option 1: If the observed data is historical and there exists a compounding effect throughout the data over time.

Option 2: If the observed data is cross-sectional and there exists no compounding effect throughout the data over time.

Option 3: If the observed data is historical and there exists no compounding effect throughout the data over time.

Option 4: If the observed data is cross-sectional and there exists a compounding effect throughout the data over time.