Tristar Growth Mutual Fund reported annual holding period returns of 22 percent in 2010,25 percent in 2011,and 31 percent in 2012.What was the simple arithmetic average return generated by Tristar for the period 2010 through 2012?

Question

Quizplus · Accepted Answer

To find the arithmetic average return generated by Tristar for the period 2010 through 2012, we need to add the annual holding period returns for the three years and divide by the number of years (3):
(22% + 25% + 31%) / 3 = 26%

Therefore, the best choice is C) 26.0%.

Tristar Growth Mutual Fund Reported Annual Holding Period Returns of 22