Question

In: Finance

What is the arithmetic mean for the following stock returns: R1=6.3%, R2=4%, R3=7.2%? A) 17.5% B)...

What is the arithmetic mean for the following stock returns: R1=6.3%, R2=4%, R3=7.2%?

A) 17.5%

B) 4.375%

C) 5.833%

D) 5.825%

E) 18.512%

Solutions

Expert Solution

Ans C) 5.833%

YEAR RETURN
1 6.3
2 4
3 7.2
Total 17.5
arithmetic mean = Total Return / NO of years
17.5 / 3
5.833

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