Exhibit 7-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $$\begin{array} { c c c c }
\text { Period } & \begin{array} { c }
\text { Return } \
\text { of Radtran } \
\text { (Percent) }
\end{array} & \begin{array} { c }
\text { Ppecific Index } \
\text { (Percent) }
\end{array} & \begin{array} { c }
\text { True } \
\text { General Index } \
\text { (Percent) }
\end{array} \
\hline 1 & 10 & 12 & 15 \
2 & 12 & 10 & 13 \
3 & - 10 & - 8 & - 8 \
4 & - 4 & - 10 & 0
\end{array}$$
-Refer to Exhibit 7-3. What is the average return for Radtron?
A) 1%
B) 2%
C) 3%
D) 4%
E) 5%

Question

Exhibit 7-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $$\begin{array} { c c c c } 
\text { Period } & \begin{array} { c } 
\text { Return } \
\text { of Radtran } \
\text { (Percent) }
\end{array} & \begin{array} { c } 
\text { Ppecific Index } \
\text { (Percent) }
\end{array} & \begin{array} { c } 
\text { True } \
\text { General Index } \
\text { (Percent) }
\end{array} \
\hline 1 & 10 & 12 & 15 \
2 & 12 & 10 & 13 \
3 & - 10 & - 8 & - 8 \
4 & - 4 & - 10 & 0
\end{array}$$
-Refer to Exhibit 7-3. What is the average return for Radtron?
A) 1%
B) 2%
C) 3%
D) 4%
E) 5%

Quizplus · Accepted Answer

The average return for Radtron is 1%. This can be calculated by adding up the returns for each period and dividing by the number of periods. In this case, the returns are 10%, 12%, -10%, and -4%. Adding these up gives us a total of -2%. Dividing by the number of periods (4) gives us an average return of -0.5%, or 1%.

Exhibit 7-3 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

Exhibit 7-3
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)