What is the arithmetic mean of a series of investment returns: 18.3%, 0.7%, −7.6%, 11.9%, and 2.5%?

What is the arithmetic mean of a series of investment returns: 18.3%, 0.7%, −7.6%, 11.9%, and 2.5%?

• A. 4.77%
• B. 8.20%
• C. 5.16%
• D. 8.01%

Answer: (C)

To calculate the arithmetic mean of a series of numbers, you need to sum all the values together and then divide by the total number of values. In this case, the investment returns are 18.3%, 0.7%, -7.6%, 11.9%, and 2.5%. First, add the returns together: 18.3 + 0.7 - 7.6 + 11.9 + 2.5 = 25.8% Next, count the number of returns. There are five values in total. Now, divide the sum of the returns by the number of returns: 25.8% ÷ 5 = 5.16% Thus, the arithmetic mean of these investment returns is 5.16%. This calculation effectively averages out the returns to show the overall return of the investments over the period evaluated.

To calculate the arithmetic mean of a series of numbers, you need to sum all the values together and then divide by the total number of values. In this case, the investment returns are 18.3%, 0.7%, -7.6%, 11.9%, and 2.5%.

First, add the returns together:

18.3 + 0.7 - 7.6 + 11.9 + 2.5 = 25.8%

Next, count the number of returns. There are five values in total.

Now, divide the sum of the returns by the number of returns:

25.8% ÷ 5 = 5.16%

Thus, the arithmetic mean of these investment returns is 5.16%. This calculation effectively averages out the returns to show the overall return of the investments over the period evaluated.