The Simple Arithmetic Average Return for the Common Stock of Saltwater

question 43

Multiple Choice

The simple arithmetic average return for the common stock of Saltwater Expeditions Incorporated for the eight-year period from 2005 through 2012 was 21 percent.The one-year holding period returns from 2005 through 2011 are given below.What is the implied one-year holding period return for 2012?

• A) 21.4%
• B) 24.4%
• C) 3.0%
• D) 13.0%
• E) −3.0%

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Definitions:

Luxury

A state or condition of great comfort, opulence, and extravagant living.

Economy

A system of production, distribution, and consumption of goods and services within a particular geographical area.

Semi-Independent Suspensions

A type of vehicle suspension system that allows for some degree of independence between wheels on the same axle, improving ride comfort.

Lateral Acceleration

The rate of change of velocity of a body in a direction perpendicular to its direction of motion, often measured in vehicles to determine cornering capabilities.