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OlgaM077 [116]
3 years ago
13

The S&P 500 index delivered a return of 20%, -10%, 20%, and 5% over four successive years.

Business
1 answer:
sladkih [1.3K]3 years ago
4 0

Answer:

C) 8.75%

Explanation:

Number of periods = 4 years

Given return rates = 20%, -10%, 20%, and 5%

To obtain the arithmetic average annual return, add the return rates given for all periods and divide the sum by the number of periods.

AAR = \frac{20-10+ 20+ 5}{4} \\AAR=8.75\%

Over four years, the S&P 500 index delivered an arithmetic average annual return of 8.75%.

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If you bought Nike stock for $76 a share and sold them for $100 per share, your profit was
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3 years ago
The amount of the estimated average income for a proposed investment of $73,000 in a fixed asset, giving effect to depreciation
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Read 2 more answers
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