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Aportfolio manager states that the return for the period is 5.34 per cent by using the following annual rates of returm Year. Return 1. 6% 2 -37% 3. 27% What type of
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- Find the overall percentage change in the price of a good if it rises by 5% in a year but is then reduced by 30% in a sale. Select one: O a. 25% O b. 26.5% O c. 35% O d. 73.5% O e. Cannot be determinedBaghibenA company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 a) Calculate decimal. Please present answer to nearest half a month.
- A company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 Calculate NPV of both products (to 1 d.p.) assuming a discount rate of 7%. Which product should be chosen and why?Can u calculate d and e2. Over the last five years, you have earned the following returns on the NZX Year Return (ending in March) 2013-2014 17.45% 2014-2015 15.17% 2015-2016 17.26% 2016-2017 7.94% 2017-2018 16.92% 2018-2019 19.54% 2019-2020 0.36% 28.93% 2020 2021 2021-2022 -5.17% You have also collected the level of the CPI over the same period: Date Level March 2013 958 March 2014 972 March 2015 975 March 2016 979 March 2017 1000 March 2018 1011 March 2019 1026 March 2020 1052 March 2021 1068 March 2022 1142 (a) For each tax year, calculate the inflation rate. (b) Now calculate a real rate of return for the NZX50 (use the full for- mula, not the approximation) for each year. (c) What is the mean nominal return for the NZX50? What is the mean real return? (d) What is the nominal volatility for the NZX50? What is the real volatility of the NZX50? (e) Suppose New Zealand had a 33% tax levied on capital gains and all dividends. Repeat your analysis, calculating after-tax mean real and nominal returns, along…
- Find the overall percentage change in the price of a good if it rises by 5% in a year but is then reduced by 30% in a sale. Select one: а. 25% b. 26.5% C. 35% d. 73.5% е. Cannot be determinedA company is thinking of investing in one of two potential new products for sale. The projections are as follows: Year Revenue/cost £ (Product A) Revenue/cost £ (Product B)0 (150,000) outlay (150,000) outlay 1 24,000 12,0002 24,000 25,3333 44,000 52,0004 84,000 63,333 Calculate the IRR for Product B only using 3% and 15% to 2 d.p.Is this right or is the result the effective semi-annual rate? APR=2.5% Semi-Annual R = 2.52/2 =1.25 Effective Annual Rate =(1+semi annual rate)2−1 =(1+1.25%)2−1 =(1+0.0125)2−1 =1.01252−1 =1.02515625−1 =0.2515625*100 =2.515625 The effective annual rate is 2.52
- Consider the following table for an eight-year period: \table[[Year,T-bill return,Inflation],[1,7.48%,8.52% Solve for C. And D. only. -- a. and b. are taken care ofYou plan to invest in an account which pays 3.5% compounded continuously. If the investment period is for 12 years, then A(P) = P e 0.035 · 12 = P e 0.42 gives the total balance of P dollars. Find a formula for A'(P). Find and interpret A'(4000). Compare the approximation to the actual change. a. b. С. a. A'(P) =| (Type an exact answer in terms of e.) b. A'(4000) = %3D (Round to the nearest cent as needed.) Interpret A'(4000) = 1.52 O A. The future value of a 13 year investment of $4001 will be $ more than the future value of a 13 year investment of $4000. O B. The future value of a 13 year investment of $4000 will be $ more than the future value of a 13 year investment of $4000. O C. The future value of 12 year investment of $4000 at 4.5% will be $ more than the future value of a 12 year investment of $4000 at 3.5%. O D. The future value of a 12 year investment of $4001 will be $ more than the future value of a 12 year investment of $4000. c. A(4001) – A(4000) = dollars per year.…Show your complete solution
