Question

Florida Company (FC) and Minnesota Company (MC) are both service companies. Their stock returns for the past three years were as follows: FC: −5 percent, 15 percent, 20 percent; MC: 8 percent, 8 percent, 20 percent. Calculate the mean return for each company.

Answer 1

Using the mean concept, it is found that:

• The mean return for Florida Company is 10%.

• The mean return for Minnesota Company is 12%.

The mean of a data-set is given by the sum of all observations divided by the number of observations.

For Florida Company(FC):

• 3 returns, of -5%, 15% and 20%.

Thus, the mean is:

$M = \frac{-5 + 15 + 20}{3} = \frac{30}{3} = 10$

The mean return for Florida Company is 10%.

For Minnesota Company(MC):

• 3 returns, of 8%, 8% and 20%.

Thus, the mean is:

$M = \frac{8 + 8 + 20}{3} = \frac{36}{3} = 12$

The mean return for Minnesota Company is 12%.

A similar problem is given at brainly.com/question/13451786