In: Finance
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%
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 |