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The rates of returns from three different shares are 100%, 200% and 400% respectively, the average rate of return will be____
  • a)
    350%
  • b)
    233.33%
  • c)
    200%
  • d)
    300%
Correct answer is option 'C'. Can you explain this answer?
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The rates of returns from three different shares are 100%, 200% and 40...
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The rates of returns from three different shares are 100%, 200% and 40...
Calculation of Average Rate of Return:

To calculate the average rate of return, we need to follow the below formula:

Average Rate of Return = Total Return / Number of Shares

Here, we have 3 different shares with different rates of returns:

- Share 1: 100%
- Share 2: 200%
- Share 3: 400%

Total Return:

To calculate the total return, we need to add all the returns:

Total Return = 100% + 200% + 400%
Total Return = 700%

Number of Shares:

As we have 3 different shares, the number of shares will be 3.

Putting the values in the formula:

Average Rate of Return = Total Return / Number of Shares
Average Rate of Return = 700% / 3
Average Rate of Return = 233.33%

Therefore, the average rate of return is 233.33% (Option B).

Hence, option C is incorrect.
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The rates of returns from three different shares are 100%, 200% and 400% respectively, the average rate of return will be____a)350%b)233.33%c)200%d)300%Correct answer is option 'C'. Can you explain this answer?
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