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

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
Calculate the EAR of the following investment, entered as a percentage (Example: if your answer is 0.145, enter 14.5) Year Number Cashflow 0 -11400 1 3500 2 3000 3 3100 4 2800 Your Answer:
Q1 (A). An investment of $100 produces rate of return as follows In year 1: a gain of 10 percent In year 2: a loss of percent In year 3: a loss of 8 percent In year 4: a gain of 3 percent. Calculate the value of the investment at the end of the fourth year and calculate the mean annual rate of return.
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
The present worth of income from an investment that follows an arithmetic gradient was projected to be $9500. If the income in year 1 is expected to be $1200, how much would the gradient have to be in each year, through year 7 if the interest rate is 10% per year? Select one: O a. 765 O b. 491 O c. 153 O d. 287 O e. 513
Compute the number of years (t) if future value (FV) = $5575, present value (FV) = $1812, and interest rate (r) = 9.1%,
If you invest $25,000 today and eight years later receive $34,010.59, what annually compounded return have you earned? (answer in percentage, but without the % sign, e.g. 6.51% is entered as 6.51 - not 0.0651)
Approximately, what is the value of PG (present worth of arithmetic gradient) if G=185, n=7 years, and i= 7.5% per year?
b1. F = Pert , which assumes continuous compounding, says that the Future value (F) of an amount (P) invested today at an annual rate (r), expressed as a decimal for the time (t), in years is given by the function. Thus if you invested $100 at the annual rate of 5 1/2% for 6 years and 3 months you would get back (at the end of the time), F = $100e(0.055)(6.25) = $100e(0.3438) = $100(1.4102) = $141.02. If you invest $15000 today, what amount does the formula say you will get back if you leave it for 5 years and 3 months in a savings account paying 4 1/2% annually?
Over one year, future value or cash flow (CF), present value (PV), and the rate of interest (i) are related as follows Select one: a. PV = CF (1 + i). b. CF = PV/(1+i). c. CF + PV = 1/(1+i). d. CF/PV = (1+i).
(a) Calculate the perpetual equivalent annual worth in future dollars for years 1 through ∞ for income of $50,000 now and $5000 per year thereafter. Assume the market interest rate is 8% per year and inflation averages 4% per year. All amounts are quoted as future dollars. (b) If the amounts had been quoted in CV dollars, what is the annual worth in future dollars?
What will be the total present value of an income flow starting with 1500TL/year in year 3 and ending in year 12 appreciating at a rate of 0.16, together with a lump sum income of 50 000TL to occur in year 15 if i:0.25? О а. less than 2000 TL O b. between 2001-4000 TL Oc. between 4001-6000 TL O d. between 6001-9000 TL O e. greater than 9001 TL

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