Sharif's portfolio generated returns of 12 percent, 15 percent, −15 percent, 19 percent, and −12 percent over five years. What was his average return over this period?
A) 19 percent
B) 3.8 percent
C) 17 percent
D) 2.1 percent

Question

Quizplus · Accepted Answer

To find the average return over the period, add all the returns together and then divide by the number of years. (12 + 15 - 15 + 19 - 12) / 5 = 19 / 5 = 3.8 percent.

Sharif's Portfolio Generated Returns of 12 Percent, 15 Percent, −15