An Asset Had Annual Returns of 17, −35, −18, 24

question 91

Multiple Choice

An asset had annual returns of 17, −35, −18, 24, and 6 percent, respectively, over the past five years. What is the arithmetic average return?

• A)−1.2%
• B).8%
• C)1.2%
• D)1.6%
• E)2.3%

---

Definitions:

Margin Lost

The reduction in potential earnings or profit due to inefficiencies, increased costs, or missed opportunities.

Stockout

A situation where inventory is exhausted, and a product is unavailable for sale or delivery, potentially leading to lost sales and customer dissatisfaction.

Cost of Understocking

The financial loss or missed opportunity cost incurred when inventory levels are too low to meet demand.

Holding Cost

The expenses associated with storing unsold goods or materials, including warehousing, insurance, depreciation, and opportunity costs.