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CFA Level 1
Quantitative Methods

Calculating Mean Return

Easy Statistical Concepts And Returns Measures Of Central Tendency

Consider the following dataset that represents the annual returns of a hypothetical investment over five years: 5%, 10%, 15%, -5%, and 0%.

To understand the central tendency of these returns, you need to calculate the mean return. The mean is the sum of all the returns divided by the number of returns. Select the correct mean return from the options below.

Hint

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% Correct85%