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:
A)18.2%
B)16.40%
C)18.7%
D)29.9%
E)20.24%

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:
A)18.2% 
B)16.40% 
C)18.7% 
D)29.9% 
E)20.24%

Quizplus · Accepted Answer

To find the average annual return, we need to sum up all the returns and divide by the number of years:

Average return = (5+3+20+16-5-9+12+20+11+35)/10 = 18.6

Therefore, the closest answer choice is B) 16.40%.

Use the Table for the Question(s)below