The S&P 500 index delivered a return of 25%, - 5%, 25%, and 5% over four successive years. What is the arithmetic average annual return per year?

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter8: Risk And Rates Of Return
Section: Chapter Questions
Problem 8PROB
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The S&P 500 index delivered a return of 25%, – 5%, 25%, and 5% over four successive years. What is the arithmetic average
annual return per year?
.....
А. 15%
В. 12.5%
О С. 13.75%
D. 18.75%
Transcribed Image Text:The S&P 500 index delivered a return of 25%, – 5%, 25%, and 5% over four successive years. What is the arithmetic average annual return per year? ..... А. 15% В. 12.5% О С. 13.75% D. 18.75%
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