An asset had annual returns of 17, −35, −18, 24, and 6 percent, respectively, over the past five years. What is the arithmetic average return?
A)−1.2%
B).8%
C)1.2%
D)1.6%
E)2.3%

Question

Quizplus · Accepted Answer

The arithmetic average return is the sum of the returns divided by the number of returns. In this case, the sum of the returns is 17 + (-35) + (-18) + 24 + 6 = -1.2%. The number of returns is 5. Therefore, the arithmetic average return is -1.2% / 5 = -0.24%.

An Asset Had Annual Returns of 17, −35, −18, 24