Use the following information to answer the following question(s).
Susan Bright will get returns of 18%,-20.3%,-14%,17.6%,and 8.3% in the next five years on her investment in a CB Australia Limited share,which she purchases for $73,419.66 today.
-What is the arithmetic average return on her share if she sells it five years from today?
A)1.92%
B)3.98%
C)6.47%
D)7.11%

Question

Quizplus · Accepted Answer

The arithmetic average return is calculated by summing up all the annual returns and dividing by the number of years. The sum of the returns is 18% + (-20.3%) + (-14%) + 17.6% + 8.3% = 9.6%. Dividing by 5 years gives an average return of 1.92%.

Use the Following Information to Answer the Following Question(s)