Sharif's Portfolio Generated Returns of 12 Percent, 15 Percent, −15

question 46

Multiple Choice

Sharif's portfolio generated returns of 12 percent, 15 percent, −15 percent, 19 percent, and −12 percent over five years. What was his average return over this period?

• A) 19 percent
• B) 3.8 percent
• C) 17 percent
• D) 2.1 percent

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Definitions:

Mental Arithmetic

Mental arithmetic is the ability to perform calculations in one's head without the use of pen, paper, or calculators.

Verification Times

The duration or speed with which individuals confirm the accuracy or validity of information, typically measured in cognitive and psychological experiments.

Finke's Principles

A set of guidelines proposed by Ronald Finke to explain how visual and spatial information is imagined, transformed, and elaborated in the mind.

Visual Imagery

The mental visualization of scenes, objects, or events without their physical presence, engaging the brain's visual processing system.