15. A major difference between real and nominal returns is that a. real returns adjust for inflation and nominal returns do not b. real returns use actual cashflows and nominal returns use expected cashflo c. real returns adjust for commissions and nominal returns do not d. real returns show the highest possible return and nominal returns show the possible return 16. When most people refer to mean rate of return, they are referring to the: a. holding period rate of return b. arithmetic average rate of return c. geometric average rate of return d. cumulative average rate of return 17. Which of the following statements regarding the arithmetic mean and the g is true? a. The arithmetic mean is always a better measure of average performance The geometric mean is always a better measure of average performance b. c. The arithmetic mean is a better d. The geometric mean is the best estimate of the expected return for the next