The panama Railroad Company was established in 1850 to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific oceans. The following table (The Big Ditch, Mauer and Yu, 2011) provides annual retums for the stock from 1853 through 1860. Return on Panama Railroad Year Company Stock (%) 1853 -1% 1854 -9% 1855 19% 1856 2% 1857 3% 1858 36% 1859 21% 1860 16% Calculate the mean annual return on Panama Railroad Company stock from 1853 through 1860. O 7.70% 10.04% O 10.88% O 12.16%

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The panama Railroad Company was established in 1850 to construct a railroad across the isthmus that would allow fast
and easy access between the Atlantic and Pacific oceans. The following table (The Big Ditch, Mauer and Yu, 2011)
provides annual retums for the stock from 1853 through 1860.
Return on Panama Railroad
Year
Company Stock (%)
1853
-1%
1854
-9%
1855
19%
1856
2%
1857
3%
1858
36%
1859
21%
1860
16%
Calculate the mean annual return on Panama Railroad Company stock from 1853 through 1860.
7.70%
10.04%
10.88%
12.16%
Transcribed Image Text:The panama Railroad Company was established in 1850 to construct a railroad across the isthmus that would allow fast and easy access between the Atlantic and Pacific oceans. The following table (The Big Ditch, Mauer and Yu, 2011) provides annual retums for the stock from 1853 through 1860. Return on Panama Railroad Year Company Stock (%) 1853 -1% 1854 -9% 1855 19% 1856 2% 1857 3% 1858 36% 1859 21% 1860 16% Calculate the mean annual return on Panama Railroad Company stock from 1853 through 1860. 7.70% 10.04% 10.88% 12.16%
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