5. Calculating Average Returns (LO1, CFA1) The rates of return on Cherry Jalopies, Inc., stock over the last five years were 17 percent, 11 percent, –2 percent, 3 percent, and 14 percent.

Over the same period, the returns on Straw Construction Company’s stock were 16 percent, 18 percent, –6 percent, 1 percent, and 22 percent. What was the arithmetic average return on each stock over this period?