The rates of return on Cherry Jalopies, Inc., stock over the last five years were 21 percent, 11 percent, −10 percent, 6 percent, and 11 percent. Over the same period, Straw Construction Company’s stock returns were 16 percent, 14 percent, −3 percent, 4 percent, and 16 percent. What was the arithmetic average return on each stock over this period?

The rates of return on Cherry Jalopies, Inc., stock over the last five years were 21 percent, 11 percent, −10 percent, 6 percent, and 11 percent. Over the same period, Straw Construction Company’s stock returns were 16 percent, 14 percent, −3 percent, 4 percent, and 16 percent. What was the arithmetic average return on each stock over this period?

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

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The rates of return on Cherry Jalopies, Incorporated, stock over the last five years were 16 percent, 11 percent, −1 percent, 7 percent, and 10 percent. Over the same period, the returns on Straw Construction Company’s stock were 16 percent, 22 percent, −1 percent, 5 percent, and 12 percent. What was the arithmetic average return on each stock over this period? Note: Enter your answers as a percent rounded to 1 decimal place.
The rates of return on Cherry Jalopies, Inc., stock over the last five years were 14 percent, 11 percent, -3 percent, 2 percent, and 6 percent. Over the same period, the returns on Straw Construction Company's stock were 16 percent, 15 percent, -9 percent, 4 percent, and 11 percent. What was the arithmetic average return on each stock over this period? (Enter your answers as a percent rounded to 1 decimal place.) Cherry average return % Straw average return %
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