Two investments generated the following annual returns: 20X0 20X1 20X2 20X3 20X4 Investment X 13% 17 24 19 8 -Select- a. What is the average annual return on each investment? Round your answers to one decimal place. The average annual rate of return on X: The average annual rate of return on Y: b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places. % Standard deviation of X: Standard deviation of Y: c. Based on the standard deviation, which investment was riskier? was riskier. Investment 23% 26 14 25 20

Two investments generated the following annual returns: 20X0 20X1 20X2 20X3 20X4 Investment X 13% 17 24 19 8 -Select- a. What is the average annual return on each investment? Round your answers to one decimal place. The average annual rate of return on X: The average annual rate of return on Y: b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places. % Standard deviation of X: Standard deviation of Y: c. Based on the standard deviation, which investment was riskier? was riskier. Investment 23% 26 14 25 20

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%
Problem 3:Here are the annual returns for five different stocks. Determine the expected return and risk for a period of five years for each of the stocks. Problem 4:a. Find the coefficient of variation (CV) for each of the actions in problem 3.b. Explain which of the investments a risk averse investor would prefer and which a risk lover investor would prefer. Answer clearly and in detail. Show all the computations that led to the result.
Find the standard deviation for a security that has three one-year returns of -1%,8% , and 16%, respectively .
7. Impacts of Costs on Returns. A mutual fund has a 1.6% expense ratio and begins with a $124.655 NAV. It experiences the annual returns shown below. What are the end-of-year NAVS after fees for each year? What are the after-fee returns each year? (LO 4-4) Money to Invest NAV Expense ratio Year 1 return Year 2 return Year 3 return Year 4 return Year 5 return $ 10,000.00 $ 124.655 1.6% 5% -12% 18% 4% 23%
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…
Here are the percentage returns on two stocks. Digital Executive Fruit Cheese 14% 4% Month January February March April May June July August 6 8 Variance Standard deviation % Digital Cheese 2 4 14 a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.) -3 47.5 69X Executive Fruit 23 2 4.8 X
can you help me with question b please
Calculate the standard deviation of this scenario Outcome 1: Recession. Probability = 40% . Return = 7.38%. Outcome 1: Recovery. Probability = 60%. Return = 17.27 %. Answer in % terms w/o % sign and to 4 decimal places (1.2345)
39. Consider the following information. Assuming this represents the Population. Investment X 4% -10% 8% 8 Year 1 2 3 14% Investment Y -6% 8% 12% -2% Risk Free Rate: 2% The Covariance of Investment X and Investment Y is (Hint: Covariance = 1/nΣ(xi — Xavg)(yi - Yavg) A. -32.60 B. -21.00 C. +144.82 D. -103.50 E. +114.34
1. The expected returns for the two assets are given below: Year Asset F Asset G 2013 16% 17% 2014 17 16 2015 18 15 2016 19 14 A. Calculate the expected return for Asset F along with the standard deviation. B. If 50% of money is invested in Asset F and 50% in Asset G calculate the portfolio return and standard deviation
The ordered pairs (0 , 5000) and (10 , 13591.41) represent the value of an investment at two different times: When the investment was made, and 10 years later. Let f(t), where t is time in years, be the linear function so that the above points lie on its graph. Then, using f(t), the value of the investment after 12 years is R_______ 1. Fill in the blank, If the interest rate for the investment is 10% per annum, compounded continuously, then the absolute error in approximating the value of the investment after 12 years with f(t) is R____ Fill in the blank
Ten annual returns are listed in the following table: - 19.1% 16.8% 18.3% - 49.8% Click on the following icon to copy the data into a 43.3% spreadsheet.() 1.2% a. The arithmetic average return over the 10-year period is - 16.2% 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, how much would you have at the end? 45.7% (Round to four decimal places.) 44.7% 3.9%

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