Florida Company (FC)and Minnesota Company (MC)are both service companies.Their stock returns for the past three years were: FC: - 5%,15%,20%; MC: 8%,8%,20%.
Calculate the mean return for each company.

Question

Quizplus · Accepted Answer

To calculate the mean return, we add up the returns for each year and divide by the number of years:
FC: (-5 + 15 + 20) / 3 = 10%
MC: (8 + 8 + 20) / 3 = 12%
Therefore, the best choice is B: FC: 10%, MC: 12%.

Florida Company (FC)and Minnesota Company (MC)are Both Service Companies