The Value Line Index is an equally-weighted geometric average of the returns of about 1,700 firms. The value of an index based on the geometric average returns of three stocks where the returns on the three stocks during a given period were 32%, 5%, and -10%, respectively, is

A) 4.3%.
B) 7.6%.
C) 9.0%.
D) 13.4%.
E) 5.0%.

Geometric Average

A type of mean that represents the central tendency or typical value of a set of numbers by using the product of their values.

Value Line Index

An index that represents the performance of approximately 1,700 stocks in the Value Line Arithmetic and Geometric averages.

Equally-Weighted

An equally-weighted index strategy involves assigning each asset in a portfolio or index the same relative weight, contrasting with market-cap-weighted indexes where larger companies carry more weight.