You Own a Stock That Has Produced an Arithmetic Average

question 87

Multiple Choice

You own a stock that has produced an arithmetic average return of 7.8 percent over the past five years.The annual returns for the first four years were 16,11,-19,and 3 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)28.00 percent
• E)32.00 percent

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Definitions:

C

In programming, C is a high-level and general-purpose programming language that is widely used for system and application software, device drivers, and embedded firmware.

Disposable Income

Income available to an individual or household after deducting income taxes and other mandatory charges.

Inventory Investment

The purchase of goods and materials for the purpose of storing them for future sale or use in production.

Level of Inventory

Indicates the quantity of goods or materials a company has in stock at a given time, a critical factor in supply chain and operations management.