Agnessa's mutual funds have had yearly changes of 3.87%, 7.81%, and -4.30%. Calculate the annual average change in Agnessa's investment. Give your answer as a percent accurate to at least two decimal places.


Average =0.00%





To calculate the annual average change in Agnessa's investment, we will use the arithmetic mean of the yearly changes.

The yearly changes are:
- \(3.87\%\)
- \(7.81\%\)
- \(-4.30\%\)

The formula for the arithmetic mean (average) of these percentages is:
\[ \text{Average} = \frac{(3.87 + 7.81 + (-4.30))}{3} \]

Now, let's compute this step-by-step:

1. Sum the yearly changes:
\[ 3.87 + 7.81 - 4.30 = 7.38 \]

2. Divide by the number of years (3 in this case):
\[ \text{Average} = \frac{7.38}{3} \]

3. Perform the division:
\[ \text{Average} = 2.46 \]

So, the annual average change in Agnessa's investment is:
\[ \boxed{2.46\%} \]

Would you like more details or have any questions?

Here are some related questions:

1. How does the arithmetic mean differ from the geometric mean in calculating investment returns?
2. What is the impact of a negative return on the average investment return?
3. How does the average return help in understanding the performance of an investment over time?
4. What other metrics can be used to evaluate the performance of mutual funds?
5. How would an additional year with a 5% return affect the average?
6. What are the implications of having consecutive negative returns on an investment?
7. How can volatility be measured in a series of investment returns?
8. What strategies can be employed to stabilize investment returns?

**Tip:** When evaluating investment performance, consider both the average return and the volatility to get a comprehensive understanding of the risk and potential reward.

Learn how to calculate the annual average change in Agnessa's investment using arithmetic mean. Given yearly changes of 3.87%, 7.81%, and -4.30%, find out the average change accurately to at least two decimal places. Suitable for students in Grades 7-9.

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