Costs and Financial Aid. The cost of attendance is the total amount of tuition, fees, room and board, books, supplies, and other estimated school expenses. Financial aid is a combination of grants, loans, scholarships, and work-study employment designed to help offset the total cost of attendance.
One of the major problems for an investor looking at that 10% average return figure and mistakenly expecting to realize a nice yearly profit from investing in the S&P 500 is inflation. Adjusted for inflation, the historical average annual return is only around 7%.
The average annual return is 10%. The variance of return is 0.01867. The standard deviation of returns. is 13.66%. 10-8. Assume that historical returns and future returns are independently and identically distributed. and drawn from the same distribution.