Average Return The past five monthly returns for PG Company are 1.25 percent, -1.50 percent, 4.25 percent, 3.75 percent, and 1.98 percent. What is the average monthly return?
A) 1.946%
B) 2.546%
C) 9.73%
D) 12.73%

Question

Quizplus · Accepted Answer

To find the average monthly return, we add up all the monthly returns and divide by the number of months:

(1.25 - 1.50 + 4.25 + 3.75 + 1.98) / 5 = 2.146

So the average monthly return is 2.146%. Rounded to the nearest hundredth, the answer is 1.95%. Therefore, the best choice is A.

Average Return the Past Five Monthly Returns for PG Company