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:

Net Income

The profit a company has after all expenses, taxes, and costs have been subtracted from total revenue.

Foreign Currency Translation

Foreign Currency Translation is the process of converting the financial statements of a company into a single currency when it has operations in multiple currencies.

Property, Plant, And Equipment

Assets in the form of land, buildings, and machinery, acquired for operations and not for resale.

Preferred Stock

Preferred stock is a class of ownership in a corporation that has a higher claim on assets and earnings than common stock, typically paying dividends before common shares and having priority in the event of a liquidation.