A Portfolio Manager Generates a 5% Return in Year 1

question 103

Multiple Choice

A portfolio manager generates a 5% return in Year 1, a 12% return in Year 2, a negative 6% return in Year 3, and a return of 2% in Year 4. The annualized return for the entire period is the closest to ________.

• A) 3.05%
• B) 3.25%
• C) 3.50%
• D) 3.77%