Need some help on this powerpoint. I am lost as to what to enter and which equations to use. Please see the below and the attached. Problem 1: The following two figures illustrate historical home price trend and interest rate for the 30-years fixed rate mortgage in the United States. Based on the information, please answer the following questions if today were in 2013. Assuming that history will repeat itself, what do you think of the U.S. housing market for the next 10 years? How about mortgage rate for the next 10 years? Based on your prediction, answer the two questions below: a)If you have money, should you invest in the housing market? b)If your answer in a) is “Yes”, and one lender allows you to borrow money, should you borrow money to buy the property? Why?
Need some help on this powerpoint. I am lost as to what to enter and which equations to use. Please see the below and the attached. Problem 1: The following two figures illustrate historical home price trend and interest rate for the 30-years fixed rate mortgage in the United States. Based on the information, please answer the following questions if today were in 2013. Assuming that history will repeat itself, what do you think of the U.S. housing market for the next 10 years? How about mortgage rate for the next 10 years? Based on your prediction, answer the two questions below: a)If you have money, should you invest in the housing market? b)If your answer in a) is “Yes”, and one lender allows you to borrow money, should you borrow money to buy the property? Why?
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
Concept explainers
Question
Need some help on this powerpoint. I am lost as to what to enter and which equations to use. Please see the below and the attached.
Problem 1: The following two figures illustrate historical home price trend and interest rate for the 30-years fixed rate mortgage in the United States. Based on the information, please answer the following questions if today were in 2013.
- Assuming that history will repeat itself, what do you think of the U.S. housing market for the next 10 years? How about mortgage rate for the next 10 years?
- Based on your prediction, answer the two questions below:
a)If you have money, should you invest in the housing market?
b)If your answer in a) is “Yes”, and one lender allows you to borrow money, should you borrow money to buy the property? Why?
Problem 2:
Catherine Wood, CEO & CIO, ARK Innovation Investment
- In 2020, Cathie Wood was regarded as one of the most talented investment managers in the industry. This is no surprise: ARKK Innovation ETF returned a whopping 153% in 2020 alone, over three times more than the Nasdaq 100’s already impressive 48%.
- As of 12/14/2021, the year to date (YTD) return for ARKK Innovation ETF was down 24.96%, while the Nasdaq 100’s had a YTD return of up 23.48%.
During the interview with Matthew Fox on Dec 9, 2021*, Cathie Wood defends her beaten-down portfolio and estimates Ark fund's returns will quadruple in the next 5 years, and she explained,
"We have seen such a correction, primarily in innovation stocks as the market scaled to all time highs, that based on our estimates, our 5-year compound annual
With the information below, please discuss whether her statement is correct that “our 5-year compound annual rate of return expectation has gone from 15% at the peak in March, to nearly 40% today”.
Transcribed Image Text:30-year Fixed Morgate Rate: 1971-2013
18%
16%
14%
12%
Historical average: 8.6%
10%
8%
6%
4%
2%
0%
2013Q3
2012Q3
2011Q3
2010Q3
2009Q3
2008Q3
2007Q3
2006Q3
2005Q3
2004Q3
2003Q3
2002Q3
2001Q3
2000Q3
1999Q3
1998Q3
1997Q3
1996Q3
1995Q3
1994Q3
1993Q3
1992Q3
1991Q3
1990Q3
1989Q3
1988Q3
1987Q3
1986Q3
1985Q3
1984Q3
1983Q3
1982Q3
1981Q3
1980Q3
1979Q3
1978Q3
1977Q3
1976Q3
1975Q3
1974Q3
1973Q3
1972Q3
1971Q3
Transcribed Image Text:ARK Innovation ETF (ARKK)
* In watchlist
8 Visitors trend 2w + 10w t 9M ↑
Quote Lookup
NYSEArca - NYSEArca Delayed Price. Currency in USD
96.17 -1.56 (-1.60%) 95.92 -0.25 (-0.26%)
Pick 3 free reports per quarter fro
profiled
At close: December 10 04:00PM EST
After hours: Dec 10, 07:59PM EST
All research reports
Learn
Summary Chart Conversations Historical Data Profile Options Holdings Performance Risk
10 5D IM GM YTD iv sY Max
Full screen
101.50
99.17
97.73
96.83
95.17
94.50
10 AM
12 PM
02 PM
04 PM
Trade prices are not sourced from all markets
Previous Close
97.73
Net Assets
25.528
People Also Watch
Symbol
Last Price
Change
Орen
98.95
NAV
108.84
ARKG
60.65
-1.08
Bid
95.88 x 900
PE Ratio (TTM)
N/A
ARK Genomic Revolution ETF
ARKW
125.42
-2.31
Ask
95.93 x 1100
Yield
0.00%
ARK Next Generation Internet ETF
Day's Range
95.61 - 100.57
YTD Daily Total Return
-13.40%
ARKF
42.47
-0.87
ARK Fintech Innovation ETF
52 Week Range
89.03 - 159.70
Beta (5Y Monthly)
1.56
-0.44
ARKQ
ARK Autonomous Technology & Robotics .
78.54
Volume
13,002,597
Expense Ratio (net)
0.75%
PLTR
18.94
-0.27
Avg. Volume
6,809,230
Inception Date
2014-10-30
Palantir Technologies Inc.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education