The S&P 500 index delivered a return of 15%, -5%, 25%, and 10% over four successive years. What is the arithmetic average annual return per year? A. 13.5% B. 16.88% C. 11.25% D. 12.38%

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 15.1.2MBA
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The S&P 500 index delivered a return of 15%, -5%, 25%, and
10% over four successive years. What is the arithmetic
average annual return per year?
A. 13.5%
B. 16.88%
C. 11.25%
D. 12.38%
Transcribed Image Text:The S&P 500 index delivered a return of 15%, -5%, 25%, and 10% over four successive years. What is the arithmetic average annual return per year? A. 13.5% B. 16.88% C. 11.25% D. 12.38%
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