Your KiwiSaver account was worth $53,000 five years ago and it is now worth $151,000.What is the annual holding period yield (HPY) on your portfolio during this period?(Important: please enter your answer as a decimal, so for example 10.1% or -10.1% would beentered in as .101 or -.101 respectively).Answer:

Answered: Image /qna-images/answer/7ebc6ea8-be96-4610-8e55-5dfa865c6133.jpg

Answered: Your KiwiSaver account was worth…

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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Q9 At the beginning of the month, you owned $6,000 of News Corp, $5,000 of First Data, and $8,500 of Whirlpool. The monthly returns for News Corp, First Data, and Whirlpool were 8.24 percent, −2.59 percent, and 10.13 percent. What’s your portfolio return? (Do not round intermediate calculations and round your final answer to 2 decimal places.) PORTFOLIO RETURN. %
At the beginning of the month, you owned $7,000 of News Corporation, $5,000 of First Data, and $8,000 of Whirlpool. The monthly returns for News Corporation, First Data, and Whirlpool were 8.70 percent, -2.66 percent, and 10.83 percent. What's your portfolio return? A 1 2 Value 3 Return B New Corporation $7,000 8.70% First Data $ 5,000 -2.66% Whirlpool $ 8,000 10.83 % Note: Do not round intermediate calculations and round your final answer to 2 decimal places. Portfolio return D %
You want to limit your 1% VaR to $100,000. How much can you own of an asset with 40% annualized volatility and Normal returns? Options A $1,703,273 B $5,871 C $93,200 D $107,296
Let's value a REIT using Net Asset Value another way. (All values are in Millions) Assume a REIT has debt of 1,000M, there are 100M shares outstanding, both the stock price and NAV/share equal $5, and a fair cap rate for the portfolio is 10.0%, what is the implied NOI? $100M $105.5M $101 M $150M
Below is some data from Yahoo! Finance for Apple Inc on 11/5/2019. Assume that the market return is 7% and the risk free rate is 1.8%. a) What is the market risk premium? b) What is the cost of equity for Apple?
a. What is the NPV of investing today? The NPV is $428,235.29. (Round to the nearest dollar.) b. What is the NPV of waiting and investing tomorrow? The NPV if the rate goes up is $0. (Round to the nearest dollar.) The NPV if the rate goes down is $ 563,404.25. (Round to the nearest dollar.) The PV is $444,242. (Round to the nearest dollar.) c. Verify that the hurdle rate rule of thumb gives the correct time to invest in this case. The hurdle rule is $249,887.64. (Round to the nearest dollar.) (Select from the drop-down menu.) The NPV <0, so wait
For a two-period binomial model, you are given: Each period is one year. The current price for a non dividend-paying stock is 20. u = 1.2840, where u is one plus the rate of capital gain on the stock per period if the stock price goes up. d = 0.8607, where d is one plus the rate of capital loss on the stock per period if the stock price goes down. The continuously compounded risk-free interest rate is 5%. Calculate the price of an American call option on the stock with a strike price of 22.
State the return rate (in %) for your optimal portfolio.
Suppose the return of asset A to D, is given as follows: Asset 2018 2019 2020 2021 A 9% 10% -2 % 15% B 7% 10% 5 % 9% C -11% 20% 12% 8% D 10% 16% -5 % -8% Calculate the expected return of: a. One stock at a time b. Portfolio of A, B & D, and, B, D, & A c. Portfolio of A & B, and, D & B d. Portfolio of all the four stocks
Consider the rate of return of stocks ABC and XYZ. Year rABC rXYZ 1 22 % 34 % 2 12 12 3 14 18 4 7 0 5 1 −8 1. If you were equally likely to earn a return of 22%, 12%, 14%, 7%, or 1%, in each year (these are the five annual returns for stock ABC), what would be your expected rate of return? (Do not round intermediate calculations.) 2. What if the five possible outcomes were those of stock XYZ? 3. Given your answers to (d) and (e), which measure of average return, arithmetic or geometric, appears more useful for predicting future performance? A. Arithmetic B. Geometric
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?
Suppose that you have the following utility function: U=E(r) – ½ Aσ2 and A=3 Suppose that you have $10 million to invest for one year and you want to invest that money into ETFs tracking the S&P 500 (US) and S&P/TSX 60 (Canada) index, which are often used as proxies for the US and Canadian stock markets, respectively, and the Canadian one-year T-bill. Assume that the interest rate of the one-year T-bill is 0.35% per annum. You have found two ETFs that you are interested in. From a set of their historical data between 2001 and 2019, you have estimated the annual expected returns, standard deviations, and covariance as follows: ETFUS : E(r)= 0.070584 0.173687 ETFCDA : E(r)= 0.073763 0.16816 Covariance between ETFUS and ETFCDA = 0.02397 Answer the following questions using Excel: What is the optimal portfolio of ETFUS and ETFCDA? Also submit an Excel file to show your work.

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