Response:
The yearly average return stands at 9.6 %
Clarification:
Calculating the average return
Assuming the price per share is 100
Initial Growth Final
Value % Value
Company A 50 % at 100 5,000 8 % 5,400
Company B 30 % at 100 3,000 12 % 3,360
Company C 20 % at 100 2,000 10 % 2,200
Total amounts 10,000 10,960
To find the average return, take the increase in value over the base, divided by the base
10,960 - 10,000 = 960/ 10000 = 9.6 % average return