Suppose the quarterly arithmetic average return for a stock is 10% per quarter and the stock gives a return of 15% each over the next two quarters. The arithmetic average return over the six quarters is ________. 49) A) 11.67% B) 12.83% C) 16.33% D) 15.17%

Respuesta :

Across the six quarters, the arithmetic average return is 11.67%.

What is the typical return rate?

The average yearly return (profit) from an investment is known as the average rate of return (ARR). It is stated as a quotient of the initial investment amount. By dividing the average yearly profit by the investment cost and multiplying the result by 100 percent, the ARR is determined.

How can you figure out the average yearly return?

How to determine yearly rate of return is as follows: The amount of money you gained or lost at the end of the year ("end of year price" or "EYP") is equal to the initial investment you made at the start of the year ("beginning of year price" or "BYP"). 2. Subtract the initial investment from the difference.

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