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The rates of return on Cherry Jalopies, Inc., stock over the last five years were 12%,...

The rates of return on Cherry Jalopies, Inc., stock over the last five years were 12%, 11%, −2%, 7%, and 10%. Over the same period, the returns on Straw Construction Company’s stock were 8%, 21%, −2%, 4%, and 13%. What was the arithmetic average return on each stock over this period?

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Answer #1

Arithmetic average return= (r1+r2+r3+.........+rn)/n

Calculation is as follows:

Formulas used:

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