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You own a stock that had returns of 12.05 percent, −16.76 percent, 21.64 percent, 25.41 percent, and 9.29 percent over the past five years. What was the arithmetic average return for this stock?

Respuesta :

tutorAnne

Answer:Arithmetic average return =10.326%

Explanation:

Year Returns      

1      12.05%      

2    - 16.76%      

3      21.64%      

4      25.41%

5           9.29%      

Total returns = 51.63%

Arithmetic average is The sum of all of the numbers in a considered list divided by the number of items of the list.

Therefore,      

Arithmetic average return = Sum of  year 1 to year 5 returns / number of items(year)

= 51.63% /  5

= 10.326%

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