A Stock Had Annual Returns of 7

Multiple Choice

A stock had annual returns of 7.63 percent,9.28 percent,−3.11 percent,and 15.09 percent for the past four years,respectively.What is the real arithmetic average rate of return for this period if inflation averaged 2.3 percent?

A) 4.15 percent
B) 5.24 percent
C) 4.81 percent
D) 5.02 percent
E) 5.36 percent