Over the past four years, Hi-Tech Development stock returned 35.2, 38.8, 18.4, and −32.2 percent annually. What is the arithmetic average return?
A)15.05%
B)17.67%
C)20.53%
D)24.20%
E)32.25%

Question

Quizplus · Accepted Answer

The arithmetic average return is the sum of the returns divided by the number of years. In this case, the sum of the returns is 35.2 + 38.8 + 18.4 - 32.2 = 60.2 and the number of years is 4. Therefore, the arithmetic average return is 60.2 / 4 = 15.05%.

Over the Past Four Years, Hi-Tech Development Stock Returned 35