The s& p 500 index delivered a return of 25%, 15%, -35%, and -5% over four successive years.
what is the arithmetic average annual return for four years?
a) -5%
b) 0%
c) 5%
d) 3%

arithmetic average annual return is 0

correct option is B) 0%

Explanation:

given data

return r1 = 25%

return r2 = 15%

return r3 = -35%

return r4 =  -5%

to find out

What is the arithmetic average annual return for four years

solution

we know that arithmetic average annual return is express as

    .........................1

here is arithmetic mean and ∑x is sum of return and N is number of observation i.e 4

so put here value in equation 1 we get

= 0

so arithmetic average annual return is 0

correct option is B) 0%

answer; ///(d); determining who competes most closely   with whom evaluating whether industry driving forces and competitive pressure favor some strategic groups and hurt others, and ascertaining whether the profit potential of different strategic groups varies due to the strengths and weaknesses in each groups respective market positions;

answercompetitive advantage;