answersLogoWhite

0

averaging percentage changes produce an inaccurate measure of the true rate of return because it does not consider compounding

User Avatar

Wiki User

11y ago

What else can I help you with?

Continue Learning about Statistics

Can population percentage be used to calculate chi-square goodness of fit test?

No, it cannot be used to measure that.


Is the independent variable what you measure?

no, sweetheart-and no I'm not an adult. an independent variable is something that changes in an experiment


Why modified duration is a better measure than maturity when calculating the bonds sensitivity to changes in interest rate?

i need the answer...please


How do you calculate the percentage of air in sand?

Well from what I have learnt. You can find out by doing an experiment. Add 100 cm3 of sand to a measuring cylinder then add 100 cm3 of water. Shake it up and measure the solution with the cylinder. To find the air percentage just put the result over 200 and divide it by 100% and that's your air percentage. I'm not sure how accurate this is but bear in mind I'm just an 11th grader trying to get through biology. Hope this helped.


What is the difference between a dollar return and percentage return?

A dollar return measures the absolute profit or loss from an investment in monetary terms, reflecting the actual amount gained or lost. In contrast, a percentage return expresses this gain or loss as a fraction of the initial investment, allowing for easier comparison across different investments or time periods. While the dollar return provides a specific figure, the percentage return offers a relative measure of performance. Both are useful for assessing investment success, but they serve different purposes in financial analysis.

Related Questions

Consumer price index?

Consumer price index is a way to measure the averages of prices of consumer goods and services. It is calculated by taking price changes of items or goods and averaging them. Consumer price index is used to assess price changes associated with the cost of living.


Advantage of index number?

- can assess the statistics much more quickly - can measure the volume of trade from one period to another - can measure changes in price level : rate of inflation - shows percentage change, so can compare the changes between different measurements


Limitations of the wheatstone bridge?

The Wheatstone bridge can be sensitive to environmental factors like temperature changes and can be affected by resistance variations in the arms of the bridge. It requires precise resistor values for accurate measurements and can be limited in its ability to measure very small changes in resistance.


What measures how much quantity demanded for a product changes when its price changes?

The measure that quantifies how much the quantity demanded for a product changes in response to a change in its price is called price elasticity of demand. It is calculated as the percentage change in quantity demanded divided by the percentage change in price. A higher elasticity indicates that consumers are more responsive to price changes, while a lower elasticity suggests that demand is relatively inelastic.


Why do density of a substance is wrong when some of the water splashes?

If some of the water splashes out, then the volume that you measure will be inaccurate, in that it will appear to be less than it actually is. This will cause the calculated density to be inaccurate, in that it will appear to be greater than it actually is.


What is the difference between a basis point and a percentage point in terms of measuring financial changes?

A basis point is equal to 0.01 or one-hundredth of a percentage point. It is used to measure small changes in interest rates or financial indicators. For example, if an interest rate increases by 25 basis points, it means it has increased by 0.25.


What is the difference between basis points and percentage when measuring financial data?

Basis points are a way to measure changes in interest rates or financial instruments, where one basis point is equal to 0.01. Percentage, on the other hand, is a broader measure of change where one percentage point is equal to 1. So, basis points provide a more precise measurement compared to percentages when analyzing financial data.


What are the advantages and the disadvantages of return on capital employed?

This is used to measure the amounts of returns they get from their employees. It can sometimes show an inaccurate number.


What percentage is a solution containing 150 mg of active substance in 20 ml?

A percentage measure is appropriate only when both measures are in the same units (or their multiples). Milligrams are a measure of mass while millilitres are a measure of volume. The two measure different things and they cannot be converted into a percentage.


How do you find the percentage of friendship on paper?

You cannot measure friendship in percentage terms!


The bohr model is an innaccurate model of the atom because there is no way to measure the exact of an electron in an atom?

It is an inaccurate model, because there is no way to measure the exact mass, path, and charge of an atom


What is the acidity percentage of the solution?

The acidity percentage of the solution is the measure of how acidic it is. It is typically expressed as a percentage of the total solution.