Question

Roddy Richards invested​ $12014.88 in Wolverine Meat Distributors​ (W.M.D.) five years ago. The investment had yearly arithmetic returns of minus−​9.7%, minus−​8.1%, ​15%, 7.2%, and​ 15.4%. What is the arithmetic average return of Roddy​ Richard's investment?
A. ​4.63%
B. ​8.78%
C. ​6.96%
D. ​3.38%

Answer 1

Answer: 3.96%

Explanation:

The Arithmetic Mean is a most famous Quantitative Analysis method that simply involves adding up all figures involved and dividing it by the number of figures involved.

Calculating it therefore would be,

= -9.7 + -8.1 + 15 + 7.2 + 15.4 /5

= 19.8/5

= 3.96 %

There seems to be an error in the multiple choice.

3.96 % is the arithmetic average return of Roddy​ Richard's investment based on the information we have but it is not listed.