You Own a Stock That Has Produced an Arithmetic Average

Multiple Choice

You own a stock that has produced an arithmetic average return of 8.6 percent over the past five years.The annual returns for the first four years were 16,11,-19,and 3 percent,respectively.What was the rate of return on the stock in year five?

A) -5.00 percent
B) 2.75 percent
C) 6.25 percent
D) 28.00 percent
E) 32.00 percent