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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% (6) 233.33% (c) 200% 300%?
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The rates of returns from three different shares are 100% 200% and 400...
Solution:
Calculating the Average Rate of Return
To calculate the average rate of return, we need to add up the rates of return from all three shares and divide the sum by 3 (since there are three shares).
Using the formula:
Average rate of return = (Rate of return 1 + Rate of return 2 + Rate of return 3) / 3
Substituting the given rates of return, we get:
Average rate of return = (100% + 200% + 400%) / 3
= 700% / 3
= 233.33%
Therefore, the average rate of return is 233.33%.
Explanation
The average rate of return is calculated by taking the sum of the rates of return from all the shares and dividing it by the number of shares. In this case, we have three shares with rates of return of 100%, 200%, and 400%. The sum of these rates of return is 700%. Dividing 700% by 3 gives us an average rate of return of 233.33%.
Conclusion
The average rate of return from the three shares is 233.33%. It is important to calculate the average rate of return when investing in multiple shares to get an idea of the overall performance of the portfolio.
Calculating the Average Rate of Return
To calculate the average rate of return, we need to add up the rates of return from all three shares and divide the sum by 3 (since there are three shares).
Using the formula:
Average rate of return = (Rate of return 1 + Rate of return 2 + Rate of return 3) / 3
Substituting the given rates of return, we get:
Average rate of return = (100% + 200% + 400%) / 3
= 700% / 3
= 233.33%
Therefore, the average rate of return is 233.33%.
Explanation
The average rate of return is calculated by taking the sum of the rates of return from all the shares and dividing it by the number of shares. In this case, we have three shares with rates of return of 100%, 200%, and 400%. The sum of these rates of return is 700%. Dividing 700% by 3 gives us an average rate of return of 233.33%.
Conclusion
The average rate of return from the three shares is 233.33%. It is important to calculate the average rate of return when investing in multiple shares to get an idea of the overall performance of the portfolio.
Community Answer
The rates of returns from three different shares are 100% 200% and 400...
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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% (6) 233.33% (c) 200% 300%?
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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% (6) 233.33% (c) 200% 300%? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The rates of returns from three different shares are 100% 200% and 400% respectively.The average rate of return will be: (a) 350% (6) 233.33% (c) 200% 300%? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The rates of returns from three different shares are 100% 200% and 400% respectively.The average rate of return will be: (a) 350% (6) 233.33% (c) 200% 300%?.
The rates of returns from three different shares are 100% 200% and 400% respectively.The average rate of return will be: (a) 350% (6) 233.33% (c) 200% 300%? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The rates of returns from three different shares are 100% 200% and 400% respectively.The average rate of return will be: (a) 350% (6) 233.33% (c) 200% 300%? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The rates of returns from three different shares are 100% 200% and 400% respectively.The average rate of return will be: (a) 350% (6) 233.33% (c) 200% 300%?.
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