The arithmetic average is the sum of all individual returns divided by the number of years. Therefore: 30.65 / 5 = 6.13%. Remember, year 4 is a negative number and must be deducted not added.

No such things as KFC stock. Pepsi then Yum! brands.

But arithmetic is the easy one. Just add them up and divide by the number of "them."

So: 30.65/5

6.13%

You purchased 1,500 shares of KFC stock five years ago and have earned annual returns of 7.1 percent, 11.2 percent, 5.25 percent, -4.7 percent, and 11.8 percent, respectively. What is your arithmetic average return?

4.47 percent

6.13 percent

6.23 percent

6.47 percent

8.01 percent