The S&P/ASX 200 index delivered a return of 2%, -2%, 10%, and -10% over four successive years. What is the arithmetic average annual return per year?
A)10%
B)2%
C)0%
D)6%

Question

Quizplus · Accepted Answer

The arithmetic average annual return can be found by adding up the four annual returns and dividing by the number of years:

(2% - 2% + 10% - 10%) / 4 = 0%

Therefore, the average annual return is 0%, meaning there was no average annual growth or loss.

The S&P/ASX 200 Index Delivered a Return of 2%, -2