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The past five monthly returns for PG&E are -3.33 percent 4.28 percent 3.93 percent 6.71 percent...

The past five monthly returns for PG&E are -3.33 percent 4.28 percent 3.93 percent 6.71 percent and 3.74 percent. What is the average monthly return?
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Answer #1

Let the returns in month t be denoted by Rt

Given,

R1 = -3.33%

R2 = 4.28%

R3 = 3.93%

R4 = 6.71%

R5 = 3.74%

Average Monthly Return = (R1 + R2 + R3 + R4 + R5)/5

= (-3.33 + 4.28 + 3.93 + 6.71 + 3.74)/5

= 3.07%

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