Answer:
The correct answer is 6.35%.
Explanation:
According to the scenario, the given data are as follows:
Stock return for 2012 = 6.25%
Stock return for 2013 = 4.25%
Stock return for 2014 = 7.50%
Stock return for 2015 = 10.50%
Stock return for 2016 = 3.25%
Number of years = 5
So, we can calculate the average return by using following formula:
Average return = Sum of all stock return ÷ Number of years
= (6.25% + 4.25% + 7.50% + 10.50% + 3.25%) ÷ 5
= 31.75% ÷ 5
= 6.35%
