The average return is 10.05%.

3.The last four years of returns for a stock are as follows:

 

Year 1 Year 2 Year 3 Year 4
-3.9% +27.6% +11.5% +3.8%

 

Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. What is the average annual rate? (Round to two decimal places.)

The average return is 10.15%.

The average return is 10.25%.

The average return is 10.05%.

The average return is 9.95%.