Question

31-Dec-03	200,000
31-Mar-04	196,500
30-Jun-04	200,000
30-Jul-04	220,000
30-Sep-04	243,000
31-Dec-04	250,000

Arithmetic mean is

• A. 4.67%
• B. 2.67%
• C. 5.67%
• D. 3.67%

Answer 1

Date	Value	Difference	Calculation	Return
31-Dec-03	200,000	-	-	-
31-Mar-04	196,500	-3,500	-3,500 / 200,000	-1.75
30-Jun-04	200,000	3,500	3,500 / 196,500	1.7812
30-Jul-04	220,000	20,000	20,000 / 200,000	10
30-Sep-04	243,000	23,000	23,000 / 220,000	10.4545
31-Dec-04	250,000	7,000	7,000 / 243,000	2.8807
			Sum	23.3664%

Arithmetic Mean = Sum of return / Number of returns

                        = 23.3664 / 5

                        = 4.67% answer

Option A is correct.