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According to the video, short-run projected wealth levels calculated using geometric averages are probably ______________.

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User Dhamo
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1 Answer

6 votes

Answer: A. pessimistic

Step-by-step explanation:

Geometric mean takes into account the compounding effect that the wealth would go through in the short run and this makes it more accurate which generally means lower.

Compared to other averages therefore, it will give lower figures which would tend to make it result in wealth levels that are more pessimistic than wealth levels calculated using other types of averages.

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