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The Returns on Your Portfolio Over the Last 5 Years

question 31

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The returns on your portfolio over the last 5 years were -5%,20%,0%,10% and 5%. What is the arithmetic average return?


Definitions:

Firm Size

A measure that typically reflects a company's scale of operations, often indicated by its total revenue, assets, or number of employees.

Risk Premium

The risk premium is the extra return above the risk-free rate that investors require to compensate for the risk of holding a risky asset.

Risk Aversion

The tendency of investors to prefer safer investments over riskier ones, indicating their reluctance to take on investments that carry a higher chance of losing value.

Beta

An indication of how much a stock's price fluctuates compared to the broader market.

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