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CUET · MATHS · PYQ PAPER 2025

Which of the following is not correct about the Compound Annual Growth Rate (CAGR)?

  1. A It can be used to demonstrate and compare the performance of investment advisors.
  2. B It can be used to compare the historical returns of stocks with bonds or with a savings account.
  3. C It can be used to track the performance of various business measures of one or multiple companies alongside one another.
  4. D It is calculated by taking the arithmetic mean of series of returns.
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Answer & Solution

Correct Answer

(D) It is calculated by taking the arithmetic mean of series of returns.

Step-by-step Solution

Detailed explanation

It is calculated by taking the arithmetic mean of series of returns.