Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
An investment has doubled in 8 years. What is the annually compounded rate of return ?
Select one:
a. 7.89%
b. 9.05%
c. 10.14%
d. 5.77%
You bought a Tweet Plc. share for $34.50 at the beginning of the year. During the year, the share paid a $1.50 dividend and at the end of the year it traded at $37.50. What is the total return on your investment?
Select one:
a. 12.75%
b. 11.5%
c. 14.25%
d. 13%
The risk-free rate is 8% and the expected return on a market portfolio is 13%. If a share has a beta of 1.2, what is its expected return?
Select one:
a. 17%
b. 15.5%
c. 14%
d. 16.25%
Assume you invest $1 000 at the end of this year, at the end of the second year, and at the end of the third year. How much will you have at the end of the fourth year if interest rates are 5% p.a.?
Select one:
a. $3,310.12
b. $3,405.54
c. $3,100,21
d. $3,215.41
Expert Solution
Step 1
Period = 8 Years
Investment value = 1
Future value = 2
Step by step
Solved in 2 steps
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