Spill Drink Company's stocks had -8 percent, 11 percent, and 24 percent rates of return, respectively, during the last three years; calculate the (arithmetic)average rate of return for the stock.

Question

Quizplus · Accepted Answer

To calculate the average rate of return, we take the sum of the rates of return and divide by the number of years.
Average rate of return = (-8% + 11% + 24%) / 3 = 9%
Therefore, the best choice is B, with an average rate of return of 9 percent per year.

Spill Drink Company's Stocks Had -8 Percent, 11 Percent, and 24