The S&P/ASX 200 index delivered a return of 20%, 10%, -25%, and -5% over four successive years. What is the arithmetic average annual return per year?

Name: The S&P/ASX 200 index delivered a return of 20%, 10%, -25%, and -5% over four successive years. What is the arithmetic average annual return per year?
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

The arithmetic average annual return is calculated by summing the returns and dividing by the number of years: (20% + 10% - 25% - 5%) / 4 = 0%.

The S&P/ASX 200 Index Delivered a Return of 20%, 10