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Homework answers / question archive / For a 5-year period, a stock had annual returns of 6
For a 5-year period, a stock had annual returns of 6.4 percent, -11.2 percent, 0.3
percent, 19.8 percent, and 13.4 percent. What is the arithmetic average return?
Computation of Arithmetic Average Return:
Arithmetic Average Return = (6.40% - 11.20% + 0.30% + 19.80% + 13.40%) / 5
= 28.70% / 5
= 5.74%
So, Arithmetic Average Return of Stock is 5.74%.
