CUET Mathematics - Which of the following is correct about the compound annual growth rate? | PYQs + Solutions

CUET Mathematics 2025 13 May Shift 1

Statistics & Applications

Medium

applied

It is an average annualized return of an investment.

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

It is a linear measure that does not account for the effects of compounding.

It smoothens out the volatile nature of year by year growth/decay rates and provides more accurate results.

✅ Correct Option: 4

CUET Mathematics 2025 13 May Shift 1 PYQs