The past five monthly returns for PG Company are 3.25 percent, −1.45 percent, 4.35 percent, 6.49 percent, and 3.75 percent. What is the average monthly return?
A) 1.366 percent
B) 1.608 percent
C) 3.278 percent
D) 3.858 percent

Question

Quizplus · Accepted Answer

To find the average monthly return, add all the monthly returns and divide by the number of months. The sum of the returns is 3.25 - 1.45 + 4.35 + 6.49 + 3.75 = 16.39 percent. Dividing by 5 months gives an average monthly return of 3.278 percent.

The Past Five Monthly Returns for PG Company Are 3