An Asset Had Annual Returns of 19, -38, -17, 25

question 93

Multiple Choice

An asset had annual returns of 19, -38, -17, 25, and 5 percent, respectively, over the past five years. What is the arithmetic average return?

• A) -1.2 percent
• B) 0.8 percent
• C) 1.2 percent
• D) 1.6 percent
• E) 2.3 percent

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Definitions:

Ideal Type

A conceptual model that captures the essential qualities of a phenomenon, used as a tool for analysis and comparison in the social sciences.

Capitalism

Capitalism is an economic system where trade, industry, and the means of production are largely or entirely owned by private individuals or corporations, aiming for profit in competitive markets.

Classical Theorist

A scholar from the foundational period of a discipline whose theories remain influential to contemporary understanding and practice.

Jean-Jacques Rousseau

An 18th-century Genevan philosopher, writer, and composer known for his influential ideas on education, society, and politics, which emphasize natural human goodness and the corrupting nature of civilization.