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Consider the following realized annual returns: Year End Index Realised Return (%) Stock A Realised Return (%) 2000 23.6 46.3 2001 24.7 26.7 2002 30.5

Consider the following realized annual returns:

Year End

Index Realised Return (%)

Stock A Realised Return (%)

2000

23.6

46.3

2001

24.7

26.7

2002

30.5

86.9

2003

9.0

23.1

2004

-2.0

0.2

2005

-17.3

-3.2

2006

-24.3

-27.0

2007

32.2

27.9

2008

4.4

-5.1

2009

7.4

-11.3

The average annual return on the Index from 2000 to 2009 is closest to:

A: 8.75%

B: 4.00%

C: 9.75%

D: 7.10%

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