The annual returns (in percent)for a sample of stocks in the technology industry over the past year are as follows: 4.2 -9.4 2.8 -16.0 -6.6.
The average return is the closest to _____.
A) -6.6
B) -5
C) 0
D) 2.8

Question

Quizplus · Accepted Answer

To find the average return, we add up all the returns and divide by the number of stocks.

Average return = (4.2 - 9.4 + 2.8 - 16.0 - 6.6) / 5 = -5

Therefore, the closest average return is -5, which is option B.

The Annual Returns (In Percent)for a Sample of Stocks in the Technology