Consider the following returns for two investments, A and B. over the past four years:Investment 1:Investment 21a-1. Calculate the mean for each investment. (Round your answers to 2 decimal places.)Investment 1Investment 2Investment 1O Investment 26%a-2. Which investment provides the higher return?Investment 1Investment 2Meanb-1. Calculate the standard deviation for each investment. (Round your answers to 2 decimal places.)Investment 1Investment 296%Investment 1Investment 2Standard Deviationb-2. Which investment provides less risk?5165.7.5c-1. Given a risk-free rate of 1.2%, calculate the Sharpe ratio for each investment. (Round your answers to 2 decimal places.Sharpe Ratio

Before computing the Sharpe ratio, it is essential to calculate both the mean (which provides the…

Consider the following returns for two investments. A and B, over the past four years: Investment 1: Investment 2: Investment 1 Investment 2 Investment 1 Investment 2 a-1. Calculate the mean for each investment. (Round your answers to 2 decimal places.) 2% 6% Investment 1 Investment 2 8% 12% Mean a-2. Which investment provides the higher return? Investment 1 Investment 2 Investment 1 Investment 2 % % b-1. Calculate the standard deviation for each investment. (Round your answers to 2 decimal places.) Standard Deviation -4% -8% 196 b-2. Which investment provides less risk? Sharpe Ratio 10% 96 c-1. Given a risk-free rate of 1.2%, calculate the Sharpe ratio for each investment. (Round your answers to 2 decimal pl

Consider the following returns for two investments. A and B, over the past four years: Investment 1: Investment 2: Investment 1 Investment 2 Investment 1 Investment 2 a-1. Calculate the mean for each investment. (Round your answers to 2 decimal places.) 2% 6% Investment 1 Investment 2 8% 12% Mean a-2. Which investment provides the higher return? Investment 1 Investment 2 Investment 1 Investment 2 % % b-1. Calculate the standard deviation for each investment. (Round your answers to 2 decimal places.) Standard Deviation -4% -8% 196 b-2. Which investment provides less risk? Sharpe Ratio 10% 96 c-1. Given a risk-free rate of 1.2%, calculate the Sharpe ratio for each investment. (Round your answers to 2 decimal pl

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

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Can it be shown how to find it on the financial calculator!! The past five monthly returns for Kentucky Jelly are 3.25 percent, 7.13 percent, -3.05 percent, 4.25 percent, and 6.75 percent. What is the standard deviation? 1.40 percent 3.37 percent 4.10 percent 16.83 percent
John began his investing program with a $5,500 initial investment. The table below recaps his returns each year as well as the amounts he added to his investment account. What is his dollar-weighted average return? Time 0 1 2 3 4 A) 1.5 percent B) 2.2 percent C) 2.0 percent D) 1.8 percent E) 2.6 percent Investment $ 5,500 $ 2,000 $ 2,600 $ 3,000 $ 900 Return 8.5 % 5.0 % 4.5% 9.0 % 2.5%
You are comparing two investments. The first pays 3 percent interest per month, compounded monthly, and the second pays 6 percent interest per six months, compounded every six months. a. What is the effective semiannual interest rate for each investment? b. What is the effective annual interest rate for each investment? c. Based on the interest rates, which investment is preferred? Does the decision depend on whether the comparison is based on an effective six-month rate or an effective one-year rate? a. The effective semiannual interest rate for the first investment is percent. (Type an integer or decimal rounded to two decimal places as needed.)
Round percentages and ratios to the nearest tenth of a percent, dollars to nearest whole dollar. 1. a. ________dollars b. ________dollars c. ________% d. ________dollars Use the attached present and future value tables to answer the following questions: a) Tom needs to have $20,000 in his investment account in 7 years. If his account earns 6% interest per year, how much must he deposit today in order to have $20,000 7 years from now? b) If, instead, Tom deposits $2,000 each year in the account for the next 7 years, how much will he have in the account at the end of 7 years? c) Tom wants to buy a vehicle for the business. The sticker price is $28,000. The dealer is offering him an annual payment plan of $5,873.72 per year for 6 years if he wants to finance the vehicle. What annual interest rate is the dealer charging? d) Tom pays $2,400 per year for rent on the first of January each year. He wants to deposit an amount in his 6% investment today that will allow…
The days to maturity for a sample of five money market funds are shown here. The dollar amounts invested in the funds are provided. Days to Maturity Dollar Value ($ millions) 17 15 13 6 5 4 10 25 15 10 Use the weighted mean to determine the mean number of days to maturity for dollars invested in these five money market funds. Round your answer to 2 decimal places. x = days
Kynan has an investment with the following annual returns for four years: • Year 1: 10% • Year 2: -3% • Year 3: 5% • Year 4: 11% What is the arithmetic average? The answer can be as a whole number or decimalKynan has an investment with the following annual returns for four years: • Year 1: 10% • Year 2: -3% • Year 3: 5% • Year 4: 11% What is the arithmetic average? The answer can be as a whole number or decimal
Determine the annual rate of interest, to the nearest tenth of a percent, given that the investment of $34 500 is compounded monthly and after 6 years is worth $49 750. use tvm solver or graphing calculator N= 1%= PV= PMT= FV= P/Y= C/Y= PMT: END BEGIN
Future Values Calculate the following: The future value of lump-sum investment of $3,600 in four years that earns 6 percent. Round your answer to the nearest dollar. (Hint: Use Appendix A-1 or the Garman/Forgue companion website.) Round Future Value of a Single Amount in intermediate calculations to four decimal places. $ The future value of $1,800 saved each year for three years that earns 5 percent. Round your answer to the nearest dollar. (Hint: Use Appendix A-3 or the Garman/Forgue companion website.) Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places. $
An introductory course for actuaries, I hope to get a detailed answer process and ideas. I gave the correct answer, I just want the process.
None
3. If a capital investment is $28,752.7 and equal annual cash inflows are 69,943.5, state the internal rate of return factor rounded to two decimal places.
1) The simple interest for an investment is jointly proportional to the time and the principal. After one quarter (3 months), the interest on a principal of $5000 is $43.75 a) Write an equation relating the interest ,principal and time b) Find the interest after three quarters 2) The Kinetic energy E of an object varies jointly with the object mass m and the square of the object velocity v .An object with a mass of 50 kilograms traveling at 16 meters per second has a kinetic energy of 6400 joules . a) Write an equation relating the interest ,principal and time b) What is the kinetic energy of an object with a mass of 70 kilograms traveling at 20 meters per second?

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