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The compounded annual return, derived using time value of money, is also called the:

AGradual average
BGeometric average
CGeographic average
DGraphical average
Answer & Solution
Correct answer: B. Geometric average
1. Simple averaging ignores compounding. 2. This measure builds compounding in. 3. It is the geometric average. _Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._
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