Question: Question 8) You have calculated the annual geometric average return, and annual average return. You always reinvest your dividends and interest earned on the portfolio.

Question 8) You have calculated the annual geometric average return, and annual average return. You always reinvest your dividends and interest earned on the portfolio. Which of the following methods provides the best measure of the actual historical performance of the investments you have chosen?

a)Geometric average return

b)Dollar- weighted return

c)Index return

d)Arithmetic average return

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