Given that a stock has generated returns of 6%, 18%, -5% and 20% over the last four years, the average annual return on this stock over the period was:
A) 9.75%.
B) 10.50%.
C) 12.25%.
D) 39%.

Question

Quizplus · Accepted Answer

The average annual return is calculated by summing the individual yearly returns and then dividing by the number of years. So, (6% + 18% - 5% + 20%) / 4 = 39% / 4 = 9.75%.

Given That a Stock Has Generated Returns of 6%, 18