Over the Past 4 Years, a Common Stock Has Had

question 29

Multiple Choice

Over the past 4 years, a common stock has had the following rates of return: 2.3%, 12.2%, -3.6% and7.9%. The arithmetic mean rate of return over these 4 years is

• A) 3.4%
• B) 5.3%
• C) 4.7%
• D) 6.1%

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Definitions:

Quarter

One fourth of a given quantity, often referring to a quarter of a year or a quarter of an hour (15 minutes).

Percent Decrease

A measure of how much a quantity has decreased in percentage terms compared to its previous value.

Percent Increase

The process of determining the ratio of the increase in a quantity to the original amount, expressed as a percentage.

Stock Value

The price of a single share of a company's stock, representing ownership in the company and its potential profitability.