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Usage of returns may be either arithmetic regular or geometric common but geometric ordinary is much more ideal then arithmetic common as arithmetic average is reflecting basic return over a time frame on Preliminary expense, irrespective of the money obtain from time period to time period. Nevertheless, geometric average demonstrates compound return, which makes harmony of expense price of previous yr a principle base for calculation of up coming calendar year’s return i.
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The very best method for answering the exploration thoughts is difficult the preexisting theories, assumptions or hypotheses.
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