Question

The arithmetic average of 10%, 20%, -15% and 30% is O 1) 18.75% O 2) 2.50% O3) 11.25% O4) 21.02%
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Answer #1

Arithmetic average of return is normal mean.

So, arithmetic average of n number is sum of all number divided by n

So, here arithmetic average = (10 + 20 - 15 + 30)/4 = 11.25%

Option 3). is correct.

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