An asset had returns of 14%, 26%, - 13%, 8%, and 12% over the past five years. What was the arithmetic average return of the asset?
A) 8.94%
B) 9.40%
C) 10.05%
D) 10.63%
E) 11.75%

Question

Quizplus · Accepted Answer

To find the arithmetic average return, we need to sum up the returns and then divide by the number of years: 
(14 + 26 - 13 + 8 + 12) / 5 = 47 / 5 = 9.4%
Therefore, the answer is B.

An Asset Had Returns of 14%, 26%, - 13%, 8