Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: - 5%, 15%, 20%; MC: 8%, 8%, 20%. Calculate the mean of returns for each company.
A) FC: 12%, MC: 6%
B) FC: 10%, MC: 12%
C) FC: 20%, MC: 32%
D) None of the above

Question

Quizplus · Accepted Answer

To calculate the mean return for each company, we need to sum up the returns for the three years and divide by three. For FC, (-5+15+20)/3 = 10%, and for MC, (8+8+20)/3 = 12%. Therefore, the correct choice is B.

Florida Company (FC) and Minnesota Company (MC) Are Both Service