Use the table for the question(s)below.
Consider the following realized annual returns:

-The average annual return on IBM from 1996 to 2005 is closest to:

Question

Use the table for the question(s)below.
Consider the following realized annual returns:
 
-The average annual return on IBM from 1996 to 2005 is closest to:

Quizplus · Accepted Answer

To find the average annual return for IBM from 1996 to 2005, we add up all of the annual returns and divide by the number of years: 
(0.24 + 0.15 - 0.15 + 0.02 + 0.31 + 0.19 + 0.05 + 0.10 - 0.22 + 0.05) / 10 = 0.16 or 16.40% (rounded to two decimal places). Therefore, the closest answer choice is B) 16.40%.

Use the Table for the Question(s)below