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Matthew invested $1,000 in large U.S. stocks at the beginning of 2012. This investment earned 17.30...

Matthew invested $1,000 in large U.S. stocks at the beginning of 2012. This investment earned 17.30 percent in 2012, 31.10 percent in 2013, 13.50 percent in 2014, and 2.50 percent in 2015. What return did he earn in the average year during the 2012–2015 period?

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Answer #1

Average return = Sum of all returns / number of years

Average return = (17.30% + 31.10% + 13.50% + 2.50%) / 4

Average return = 64.40% / 4

Average return = 16.10%

Average Return earned during the 2012-2015 period is 16.10%

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