The S&P 500 Index Delivered a Return of 10%, 15

question 7

Multiple Choice

The S&P 500 index delivered a return of 10%, 15%, 15%, and -30% over four successive years. What is the arithmetic average annual return for four years?

• A) 3.00%
• B) 3.50%
• C) 2.25%
• D) 2.50%

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Definitions:

Per-unit Costs

The average cost for each unit of product produced, calculated by dividing the total cost of production by the number of units produced.

Social Inhibition

Not expressing emotions that risk others’ disapproval; overlaps with introversion.

Reluctance

The feeling of hesitancy or unwillingness to do something.

Disapproval

The act of expressing an unfavorable opinion about something or someone, often leading to social or personal consequences.