Question

When investing for a long term, investors care about the volatility of ________ returns and not

the volatility of ________ returns.
A) average, cumulative
B) cumulative, average
C) mean, cumulative
D) mean, average

Answer 1

B) cumulative, average

Step-by-step explanation:

Cumulative return is the total return that the investment has earned; the average return has to do with the average return of investment that has accrued to the investment within a specified period.