You Own a Stock That Has Produced an Arithmetic Average

question 104

Multiple Choice

You own a stock that has produced an arithmetic average return of 5.6 percent over the past five years.The annual returns for the first four years were 15,10,-18,and 8 percent,respectively.What was the rate of return on the stock in year five?

• A) -5.00 percent
• B) 2.75 percent
• C) 6.25 percent
• D) 13.00 percent
• E) 32.00 percent

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Definitions:

California Dental Association

A nonprofit organization representing the dental profession in California, dedicated to advancing the profession through education, advocacy, and member services.

Clayton Act

A U.S. antitrust law enacted in 1914 to promote competition and prevent unfair business practices in the marketplace.

1914

Generally references the year notable for the start of World War I, but without additional context, it doesn't apply to a specific key-term related to law or policy.

Enacted

Made into law by official legislative action.