The S&P 500 index delivered a return of 20%, -10%, 25%, and 5% over four successive years. What is...

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The S&P 500 index delivered a return of 20%, -10%, 25%, and 5% over four successive years. What is the arithmetic average annual return per year?

David · Accepted Answer

The S&P 500 index delivered a return of 20%, -10%, 25%, and 5% over four successive years. What is the 
arithmetic average annual return per year? 
The arithmetic average annual return is calculated as the sum of all the four years divided by the 
number of years. In the above problem,

The S&P 500 index delivered a return of 20%, -10%, 25%, and 5% over four successive years. What is the arithmetic average annual return per year?

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