Calculate the Standard Return of an Investment with Five Year

question 33

Multiple Choice

Calculate the standard return of an investment with five year returns of 10%, (15%) , 12%, 8% and (5) .

• A) 7.73%
• B) 8.73%
• C) 9.73%
• D) 10.73%
• E) 11.73%

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Definitions:

Weighted Average

An average in which each quantity to be averaged is assigned a weight, reflecting its importance or frequency relative to other quantities.

Market Value

The transaction value at which a service or asset is currently listed in the market.

Corporate Tax Rate

The portion of a company's earnings that is handed over to the government in the form of taxes.