Final Answer:
The arithmetic mean return for the 1st year is 29.63, thus the correct option is 1.
Step-by-step explanation:
Arithmetic mean return, also known as the mean return, is the average of a series of returns over a given period of time. It is calculated by taking the sum of the returns and dividing it by the number of returns in the period. In this case, the arithmetic mean return for the 1st year is 29.63. This is obtained by taking the sum of the returns and dividing it by the number of returns in the period, which is 1.
The arithmetic mean return is an important metric for investors and analysts because it provides a measure of the overall performance of the investments. It is also useful for tracking and comparing performance over time. The arithmetic mean return can be used to compare the performance of different investments, to assess the performance of a portfolio, or to measure the performance of a particular asset class.
The arithmetic mean return is also a useful tool for determining the riskiness of an investment. It is calculated by taking the sum of the returns and dividing it by the number of returns in the period. The higher the arithmetic mean return, the greater the potential risk associated with the investment.
The arithmetic mean return is an important measure of an investment’s performance and should be taken into consideration when assessing the performance of a portfolio or specific investments. It is also important to remember that the arithmetic mean return is just one measure of performance and should not be used as the sole basis for making investment decisions.