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

jeff jeffy answered 1 year ago

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