Question

The following data on annual rates of return were collected from ten stocks listed on the Kuala Lumpur Stock Exchange (KLSE) of first board and second board. Assume the population standard deviations are same.

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Answer 1

The mean annual rate of return for the ten stocks listed on the KLSE of first board and second board is calculated using the formula:

Mean = (Sum of all returns)/(Number of returns)

Mean = (7.2% + 8.3% + 9.4% + 10.5% + 11.6% + 12.7% + 13.8% + 14.9% + 16.0% + 17.1%)/10

Mean = 11.7%