The S&P/ASX 200 Index Delivered a Return of 2%, -2

question 1

Multiple Choice

The S&P/ASX 200 index delivered a return of 2%, -2%, 10%, and -10% over four successive years. What is the arithmetic average annual return per year?

• A)10%
• B)2%
• C)0%
• D)6%

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Definitions:

Sole Proprietorship

A business structure where the business is owned and operated by a single individual who has personal responsibility for all debts and liabilities.

Corporation

A legal entity recognized by law as separate from its owners, with its own rights, privileges, and liabilities.

Limited Partnership

A form of partnership consisting of one or more general partners who have full liability and one or more limited partners whose liability is limited to the amount of their investment.

Limited Liability Company

An enterprise framework combining the corporation's limited liability safeguard with the tax efficiency found in partnerships or sole proprietorships.