Spill Oil Company's stocks had -8%, 11% and 24% rates of return during the last three years respectively; calculate the average rate of return for the stock.
A) 8% per year
B) 9% per year
C) 11% per year
D) None of the above

Question

Quizplus · Accepted Answer

To calculate the average rate of return, we add up the rates of return for each year and divide by the number of years. 
(-8% + 11% + 24%) / 3 = 9%. 
Therefore, the best choice is B, 9% per year.

Spill Oil Company's Stocks Had -8%, 11% and 24% Rates