Ten annual returns are listed in the following table: (Click on the following icon in order to copy its contents into a spreadsh - 19.9% 18.0% 1.2% - 16.5% 45.6% 45.2% - 3.0% 16.6% - 50.0% 43.3% 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?

Ten annual returns are listed in the following table: (Click on the following icon in order to copy its contents into a spreadsh - 19.9% 18.0% 1.2% - 16.5% 45.6% 45.2% - 3.0% 16.6% - 50.0% 43.3% 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?

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: 19.5% 16.5% 17.8% - 49.8% 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? (Click on the following icon in order to copy its contents into a spreadsheet.) 43.3% 1.7% 44.9% - 16.9% 46.3% -3.7%
Ten annual returns are listed in the following table: (Click on the following icon o in order to copy its contents into a spreadsheet.) 19.9% 16.6% 18.0% -50.0% 43.3% 1.2% - 16.5% 45.6% 45.2% -3.0% a. What is the arithmetic average retum 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? a. What is the arithmetic average return over the 10-year period? The arithmetic average return over the 10-year period is (Round to four decimal places.)
Assume that at the beginning of the year, you purchase an investment for $6,300 that pays $130 annual income. Also assume the investment's value has increased to $6,900 by the end of the year. a. What is the rate of return for this investment? Note: Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places. Rate of return % b. Is the rate of return a positive or a negative number? Positive Negative
Consider the following returns for two investments, A and B. over the past four years: Investment 1: Investment 21 a-1. Calculate the mean for each investment. (Round your answers to 2 decimal places.) Investment 1 Investment 2 Investment 1 O Investment 2 6% a-2. Which investment provides the higher return? Investment 1 Investment 2 Mean b-1. Calculate the standard deviation for each investment. (Round your answers to 2 decimal places.) Investment 1 Investment 2 96 % Investment 1 Investment 2 Standard Deviation b-2. Which investment provides less risk? 516 5.7.5 c-1. Given a risk-free rate of 1.2%, calculate the Sharpe ratio for each investment. (Round your answers to 2 decimal places. Sharpe Ratio
Assume that at the beginning of the year, you purchase an investment for $7,200 that pays $100 annual income. Also assume the investment's value has decreased to $6,800 by the end of the year. (a) What is the rate of return for this investment? (Input the amount as a positive value. Enter your answer as a percent rounded to 2 decimal places.) Rate of return % (b) Is the rate of return a positive or negative number? Positive O Negative
You invest $94.1, and your investment account shows $107.9 at the end of year one, $97.9 at the end of year two, and $107.1 at the end of year three. Calculate the Annual Holding Period Return (HPR) over the full period.
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 15.3 percent and the standard deviation of this asset for the period was 33.2 percent. Use the NORMDIST function in Excel® to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is the approximate probability that your money will triple in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616.)
Consider the following asset with it's returns over the last 3 years. The arithmetic mean is 8% 1yr 2yr 3yr 8% 4% 6% What is the geometric mean? (Be sure to go out at least 4 decimal places.) Respuesta:
Consider an initial investment of $100 using an accumulation function which is a second-degree polynomial. You are given that the future values of this investment at the end of six months and the first year are $120 and $150, respectively. Determine the present value of 100$ which is paid at time -15.
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 16.3 percent and the standard deviation of this asset for the period was 33.5 percent. Use the NORMDIST function in Excel® to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is the approximate probability that your money will triple in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616.) a. b. X Answer is complete but not entirely correct. Probability Probability 0.624 % 0.00000200 X %
Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 16.3 percent and the standard deviation of this asset for the period was 33.5 percent. Use the NORMDIST function in Excel® to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is the approximate probability that your money will triple in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616.) a. b. Probability Probability Answer is not complete. 0.624 % %
An investment had annual holding period returns of 5%, 12%, and 10% for the last three years. What are the arithmetic average of the rate of returns on the investment? a) 8.33% b) 10% O c) 8.96% d) 12% e) 9% Page 23 of 25 Next Page Previous Page Submit Quiz 19 of 25 questions saved

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