Mildred and Robert are the only buyers in the market for DVDs. Mildred buys 5 DVDs when the price of a DVD is $6.00 , 4 DVDs w
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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.
Over four years, the S&P 500 index delivered an arithmetic average annual return of 8.75%.