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![returns year 8% -10% 20% 3 6.00% average return [(0.08-0.10+0.20)/3] 5.26% Geometric average return = (1.08 x 0.90 x 1.20 ) ^](http://img.homeworklib.com/questions/40aecb40-2e09-11eb-912b-8133ada4e9ea.png?x-oss-process=image/resize,w_560)
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The next two (2) questions pertain to the historical investment returns below: Return Year 2001 8%...
Year Stock A returns (%) -18 33 1998 1999 2000 2001 2002 Stock B returns (%)...
Year Stock A returns (%) -18 33 1998 1999 2000 2001 2002 Stock B returns (%) -14.5 21.8 30.5 -7.6 26.3 15 -0.50 a) Calculate the average return for each stock during the period 1998 through 2002. (8 marks) b) Assume that someone held a portfolio consisting of 50 percent stock A and 50 percent stock B. What would have been the realized rate of return on the portfolio in each year from 1998 through 2002? What would have been...
all one question please help with all Problem #1: Geometric Mean Returns Here are the total...
all one question please help with all
Problem #1: Geometric Mean Returns Here are the total returns for the S&P500 for the first ten years of this century. Year Return 2001 -11.85 % -21.97 % 2002 2003 28.36% 2004 10.74% 2005 4.83% 2006 15.61% 2007 5.48% 2008 -36.55% 2009 26.94% 18.00 % 2010 1. If you invested one dollar on January 1, 2001 in the S&eP500, how much would it be worth ten years later? on January 1, 2011. It...
Saved Assume that the historical return on large-company stocks is a predictor of the future returns....
Saved Assume that the historical return on large-company stocks is a predictor of the future returns. What return would you estimate for large-company stocks over the next year? The next 10 years? 20 years? 40 years? Refer to Table 12.4 (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 1 year 10 years 20 years 40 years TABLE 12.4 Geometric versus Arithmetic Average Returns: 1926-2016 Average Return Standard Deviation Geometric...
Average 4-2 The spreadsheet below contains the total returns for the S&P 500 Index for the...
Average 4-2 The spreadsheet below contains the total returns for the S&P 500 Index for the years 2000-2009 in decimal form. This 10-year period has been called the "Lost Decade a. Calculate the average annual total return (geometric mean) for this index for this 10-year period. Interpret your result. b. What was the cumulative wealth on December 31, 2009, per dollar invested on January 1, 2000? c. What was the cumulative wealth on December 31, 2002, per dollar invested on...
An investment returns for the years were 4% for year 1, 3% for year 2, 7%...
An investment returns for the years were 4% for year 1, 3% for year 2, 7% for year 3, and -2% for year 4. What is the arithmetic mean and geometric mean of this investment’s returns? If the year 1, year 2, and year 3 returns have 30%, 20% and 50% probabilities of happening, what is the expected return of this investment for the three years What is the standard deviation for the investment’s returns in the first three years?
(10 points) The following historical returns have been reported for Best Buy: 2002 996 2003 11%...
(10 points) The following historical returns have been reported for Best Buy: 2002 996 2003 11% 2004 396 2005 7.0% 2006 10.096 A) What was the average return for Best Buy during this five year period? B) What is the standard deviation of Best Buy's returns for this period? C) What is the coefficient of variation of Best Buy? (10 points) The following historical returns have been reported for Best Buy: 2002 996 2003 11% 2004 396 2005 7.096 2006...
Finance - (3) (4) (5) (1) Price | $35 (2) | Return L Year 2000 2001 2002 2003 $36 $37 $38 a) Find Returns for each year...
Finance
- (3) (4) (5) (1) Price | $35 (2) | Return L Year 2000 2001 2002 2003 $36 $37 $38 a) Find Returns for each year b) Find average return c) Find Variance d) Find Standard Deviation
Consider the following realized annual returns: Year Stock A Index 2000 23.6% 50.3% 2001 24.7% 30.7%...
Consider the following realized annual returns: Year Stock A Index 2000 23.6% 50.3% 2001 24.7% 30.7% 2002 30.5% 86.9% 2003 9.0% 23.1% 2004 -2.0% 0.2% 2005 -17.3% -3.2% 2006 -24.3% -27.0% 2007 32.2% 27.9% 2008 4.4% -5.1% 2009 7.4% -11.3% a. Calculate the average of annual returns of the index. b. Compute the standard deviation of annual returns of the index. c. Compute the lower bound of the 95% confidence interval for annual returns of the index. Use the exact...
The following returns were realized on an investment over a 5-year period. Year 1 2 3...
The following returns were realized on an investment over a 5-year period. Year 1 2 3 4 5 Rate of Return 0.10 0.22 0.06 -0.05 0.20 a) Compute the arithmetic mean, and median of the returns. b) Compute the geometric mean. Round to 3 decimal places. c) Which of the three statistics computed in parts (a) and (b) best describes the return over the 5-year periods? Justify your answer with an explanation.
Consider the following returns: Year-End 2000 2001 2002 2003 2004 2005 Lowes Realized Return 20.4% 72.7%...
Consider the following returns: Year-End 2000 2001 2002 2003 2004 2005 Lowes Realized Return 20.4% 72.7% - 25.7% 56.3% 6.7% 17.9% Home Depot Realized Return - 14.6% 4.1% - 58.1% 71.9% 17.3% 0.9% IBM Realized Return 0.2% - 3.2% - 27.0% 27.9% -5.1% - 11.3% The volatility on Home Depot's returns is closest to: O A. 35% OB. 42% OC. 17% OD. 32%
Year Stock A returns (%) -18 33 1998 1999 2000 2001 2002 Stock B returns (%) -14.5 21.8 30.5 -7.6 26.3 15 -0.50 a) Calculate the average return for each stock during the period 1998 through 2002. (8 marks) b) Assume that someone held a portfolio consisting of 50 percent stock A and 50 percent stock B. What would have been the realized rate of return on the portfolio in each year from 1998 through 2002? What would have been...
all one question please help with all
Problem #1: Geometric Mean Returns Here are the total returns for the S&P500 for the first ten years of this century. Year Return 2001 -11.85 % -21.97 % 2002 2003 28.36% 2004 10.74% 2005 4.83% 2006 15.61% 2007 5.48% 2008 -36.55% 2009 26.94% 18.00 % 2010 1. If you invested one dollar on January 1, 2001 in the S&eP500, how much would it be worth ten years later? on January 1, 2011. It...
Saved Assume that the historical return on large-company stocks is a predictor of the future returns. What return would you estimate for large-company stocks over the next year? The next 10 years? 20 years? 40 years? Refer to Table 12.4 (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) 1 year 10 years 20 years 40 years TABLE 12.4 Geometric versus Arithmetic Average Returns: 1926-2016 Average Return Standard Deviation Geometric...
Average 4-2 The spreadsheet below contains the total returns for the S&P 500 Index for the years 2000-2009 in decimal form. This 10-year period has been called the "Lost Decade a. Calculate the average annual total return (geometric mean) for this index for this 10-year period. Interpret your result. b. What was the cumulative wealth on December 31, 2009, per dollar invested on January 1, 2000? c. What was the cumulative wealth on December 31, 2002, per dollar invested on...
(10 points) The following historical returns have been reported for Best Buy: 2002 996 2003 11% 2004 396 2005 7.0% 2006 10.096 A) What was the average return for Best Buy during this five year period? B) What is the standard deviation of Best Buy's returns for this period? C) What is the coefficient of variation of Best Buy? (10 points) The following historical returns have been reported for Best Buy: 2002 996 2003 11% 2004 396 2005 7.096 2006...
Finance
- (3) (4) (5) (1) Price | $35 (2) | Return L Year 2000 2001 2002 2003 $36 $37 $38 a) Find Returns for each year b) Find average return c) Find Variance d) Find Standard Deviation
Consider the following returns: Year-End 2000 2001 2002 2003 2004 2005 Lowes Realized Return 20.4% 72.7% - 25.7% 56.3% 6.7% 17.9% Home Depot Realized Return - 14.6% 4.1% - 58.1% 71.9% 17.3% 0.9% IBM Realized Return 0.2% - 3.2% - 27.0% 27.9% -5.1% - 11.3% The volatility on Home Depot's returns is closest to: O A. 35% OB. 42% OC. 17% OD. 32%
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