You have invested $10,000 in this ETF at the beginning of year 2020 and its year-end valuewas $13,600. Then what was your estimate of its daily arithmetic mean rate of return forDaily rate of return((=P¡/Po-1) in year 2020Arithmetic Meanthe year 2020? → (1) 0.1231%; (2) 0.1303%; (3) 0.1440%; (4) 0.1473; (5) 0.1512%;4|(6) 0.1640%; (7) 0.1682%;Daily standard deviation1.2%# of trading days250

Rate of return refers to the return earned on an investment or asset over a fixed period of time.…

You have invested $10,000 in this ETF at the beginning of year 2020 and its year-end value was $13,600. Then what was your estimate of its daily arithmetic mean rate of return for the year 2020? → (1) 0.1231%; (2) 0.1303%; (3) 0.1440%; (4) 0.1473; (5) 0.1512%; |(6) 0.1640%; (7) 0.1682%; Daily rate of return((=P¡/Po-1) in year 2020 Arithmetic Mean ? Daily standard deviation # of trading days 1.2% 250

You have invested $10,000 in this ETF at the beginning of year 2020 and its year-end value was $13,600. Then what was your estimate of its daily arithmetic mean rate of return for the year 2020? → (1) 0.1231%; (2) 0.1303%; (3) 0.1440%; (4) 0.1473; (5) 0.1512%; |(6) 0.1640%; (7) 0.1682%; Daily rate of return((=P¡/Po-1) in year 2020 Arithmetic Mean ? Daily standard deviation # of trading days 1.2% 250

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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Similar questions

Consider the following information related to an investment: T t+1 10000, || t+2 rt 5%; re = 4%, || || t+1 8 = 4% Find the present value of expected profits. 18663 18700 18500 18315
An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1–4, with all monetary amounts being in real dollars. Inflation is running 7% per year over that time. Also, the real rate of return is 15% per year. Determine the present worth of the investment using both real dollars and then-current dollars.
The in itial cost of an investment is $65,000 and thecost of capital is I 0%. The return is $ 16,000 per year for 8 years.What is the net present value?
You ́re considering an investment that you expect will produce an 9% return next year, and you expect that your real rate of return on this investment will be 4%. What do you expect inflation to be next year?
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
Q2. (8 points) Five annual returns are listed in the following table: Year 1 2 -20% 3 4 5 17% 18% -30% If you invested $100 at the beginning, how much would you have at the end? 40%
An investment costs $4,000 today. This investment is expected to produce annual cash flows of $1,200, $1,400, $ 1,300 and $1,100, respectively, over the next four years. What is the internal rate of return (IRR) ( or geometric average) on this investment? Question 23 options: 2.43 % 6.25 % 9.72% 31.25%
An investment, which is worth $57,023.00 and has an expected return of 17.00 percent, is expected to pay fixed annual cash flows forever with the next annual cash flow expected in 1 year. What is the present value of the annual cash flow that is expected in 3 years from today? O $9,693.91 (plus or minus 3 dollars) O $35,603.48 (plus or minus 3 dollars) O $6,052.59 (plus or minus 3 dollars) O $8,285.39 (plus or minus 3 dollars) O none of the answers are within 3 dollars of the correct answer
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For my previous question: Yield to Maturity for 2 years Maturity and price is $92.45. Formula is PV = Face Value/(1 + YTM)^time. 92.45 = 100/(1 + YTM)^2. Your answer said 1.0817 = (1 + YTM)^2 is 1.04003 = 1 + YTM. What did you do to get 1.04003?
Assuming a 1-year, money market account investment at 2.282.28 percent (APY), a 1.391.39 percent inflation rate, a 2525 percent marginal tax bracket, and a constant $50 comma 00050,000 balance, calculate the after-tax rate of return, the real rate of return, and the total monetary return. What are the implications of this result for cash management decisions?

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