The S&P 500 Index Delivered a Return of 20%, -10

question 23

Multiple Choice

The S&P 500 index delivered a return of 20%, -10%, 20%, and 5% over four successive years. What is the arithmetic average annual return for four years?

• A) 10.50%
• B) 13.13%
• C) 8.75%
• D) 9.63%

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Definitions:

Guarantees

Promises or assurances, typically in writing, that certain conditions will be fulfilled, especially concerning the quality or durability of an item.

Accusatory Tone

A manner of communication that implies blame or wrongdoing towards someone.

Deductive Organizational

A method of structuring information or arguments from general premises to specific conclusions.

Supporting Details

Information or facts provided in writing or speech that back up, illustrate, or elaborate on the main idea.