Ten annual returns are listed below.-19.9%, 16.6%, 18%, -50 %, 43.3%, 1.2%, -16.5 %, 45.6%, 45.2%,a. What is the arithmetic average return over the 10-year period?b. What is the geometric average return over the 10-year period?c. If you invested $100 at the beginning of the period, how much wouldyou have at the end?

So, if you invested $100 at the beginning of the period, you would have approximately $85.37 at the…

Answered: Ten annual returns are listed below.…

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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Ten annual returns are listed in the following table: (Click on the following icon in order to copy its contents into a spreadsheet.) - 19.6% 16.2% 18.3% - 49.8% 43.7% 1.1% - 16.4% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? 46.4% a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is %. (Round to two decimal places.) 45.3% - 3.9%
Five years ago, you invested 8,050.77. If you earned a compound annual rate of return of 3.50%, how much is your investment worth today? Question 4 options: 10,878.34 9,561.79 9,233.54 10,242.32 8,619.74
Find the present value of an investment if it is expected to provide annual earnings of $20,000 for 10 years and to have a resale value of $50,000 at the end of that period. Assume a 8% rate and earnings at year end. The present value of 1 at 8% for 10 periods is .46319. The present value of an ordinary annuity at 8% for 10 periods is 6.71008. The future value of 1 at 8% for 10 periods is 2.15892.
If annual returns for an asset are normally distributed with a mean of 8% and a standard deviation of 20%, why is the probability of achieving an average compounded annual return of at least 8% over 10 years less than 50%?
Year-to-date, Yum Brands had earned a 3.80 percent return. During the same time period, Raytheon earned 4.26 percent and Coca-Cola earned −0.46 percent.If you have a portfolio made up of 30 percent Yum Brands, 30 percent Raytheon, and 40 percent Coca-Cola, what is your portfolio return? (Round your answer to 2 decimal places.)
am. 116.
Assume that the Inflation is predicted to have an average of 5% over the next 6 years. A company invests money with a return rate of 7.8%. Determine the following: a. How much money the company needs to invest today to have $500,000 actual dollars in 6 years. b. The value in today's money of the $500,000 that the company will have in 6 years.
Suppose that you have 12, 000 in a rather risky investment recommended by your financial advisor. During the first year, your investment decreases by 40% of its original value. During the second year, your investment at the end of year one increases by 50%. Your advisor tells you that there must have been a 10% overall increase of your original $12, 000 investment. Is your financial advisor using percentages properly? If not, what is your actual percent gain or loss of your original $12, 000 investment?
Approximately, what is the value of PG (present worth of arithmetic gradient) if G=25, n=6 years, and i= 5% per year?
Ten annual returns are listed in the following table. 1 -19.9% 2 % 3 4 16.7% 19% -50% % to 5 6 (a) What is the average annual return over the ten-year period (as a percent)? % 7 % 43.2% 1.3% -16.4% 8 9 -45.5% 45.1% (b) What is the standard deviation of annual returns over the ten-year period (as a percent)? (Round your answer to two decimal places.) 10 -4% (c) What is the 95% confidence interval on the return of this stock next year (as a percent) if the past average returns and volatility of returns are unbiased estimators of expected returns and future volatility. (Round your answers to two decimal places.)
After 10 years, you managed to obtain a 7% average annual return on your investment portfolio. His starting capital was $ 50,000 and he is now worth $ 98,358. If inflation during the period averaged 2.5% per year, what was your net gain from inflation?
Approximately, what is the value of PG (present worth of arithmetic gradient) if G=185, n=7 years, and i= 7.5% per year?

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