Given the following series of annual returns for a managed fund: 5%, 6%, 23%, -15%, 20%, -29%, 40%, -40%, 23%, the average annual return over the period was:
A) 3.67%.
B) 6.37%.
C) 10.11%.
D) 13.44%.

Question

Quizplus · Accepted Answer

To calculate the average annual return, sum up all the given returns and divide by the number of years. The sum of the returns is 33%, and there are 9 years. 33% / 9 = 3.67%.

Given the Following Series of Annual Returns for a Managed