Alejandra invested $2,200 in a mutual fund in 2014. Her account has a balance of $3,100 at the end of 2020. Calculate Alejandra's geometric mean return. Question 8 options: 4.65% 5.37% 5.88% Insufficient information is provided
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Alejandra invested $2,200 in a mutual fund in 2014. Her account has a balance of $3,100 at the end of 2020. Calculate Alejandra's geometric mean return.
Question 8 options:
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4.65% |
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5.37% |
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5.88% |
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Insufficient information is provided |
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- Check My Work eBook An individual has $45,000 invested in a stock with a beta of 0.4 and another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.Terrance invested $1,500 in a mutual fund on January 1, 2010. He has brought you all of the annual statements he has received from the fund company, and asked for your help in analyzing the results. The statement shows the following returns: 2010 8% 2013 -7% 2011 2% 2014 3% 2012 -5% 2015 22% Calculate Terrance' arithmetic mean return Question 9 options: 1.87% 2.5% 3.41% 3.83%You are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year TB 2017 2018 2019 -7.00% 25.00 -13.00 2020 49.00 2021 13.00 FA -16.00% 41.00 24,00 -5.00 23.00 a. Calculate the average rate of return for each stock during the 5-year period. Do not round Intermediate calculations. Round your answers to two decimal places. Stock A: % Stock B: b. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be Indicated by a minus sign. Year 2017 2018 2019 % Portfolio % % % % 2020 2021 Average return c. Calculate the standard deviation of returns for each stock and for the…
- Terrance invested $1,500 in a mutual fund on January 1, 2010. He has brought you all of the annual statements he has received from the fund company, and asked for your help in analyzing the results. The statement shows the following returns: 2010 8% 2013 -7% 2011 2% 2014 3% 2012 -5% 2015 22% Calculate the terminal value of Terrance' investment. Question 11 options: $1,834 $1,806 $1,880 Insufficient information is providedeBook An individual has $10,000 invested in a stock with a beta of 0.4 and another $60,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places. BAYou are considering an investment in either individual stocks or a portfolio of stocks. The two stocks you are researching, Stock A and Stock B, have the following historical returns: Year FA IB 2017 -17.00% -8.00% 2018 34.00 14.00 2019 29.00 -18.00 2020 -5.00 55.00 2021 21.00 19.00 a. Calculate the average rate of return for each stock during the 5-year period. Do not round intermediate calculations. Round your answers to two decimal places. Stock A: % Stock B: % b. Suppose you had held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? Do not round intermediate calculations. Round your answers to two decimal places. Negative values, if any, should be indicated by a minus sign.
- You are given the following payoff table showing the possible annual returns of three securities for the year 2019 under different economic conditions. You considering just a single-security investment. Higher Growth Likely Growth Lower Growth Savings Account 6 6 4 Bond 9 12 15 Stock 32 21 -5 Probability 0.20 0.60 ? Required: Explain the meaning of 32 and 12 in the payoff table. Which security would you consider for investment based on the expected return? Which security would you consider for investment based on risk? Advise on the optimum rational decision and explain why?Emma Li is considering investing in two securities, A and B, and the relevant information is given below: State of Economy Probability Return on Security A (%) Return on Security B (%) Bear 0.2 4 1.2 Bull 1-0.2 10 1.2 Suppose Emma borrowed from her friend 99 shares of security B, which is currently sold at $74, and sold all shares of the security. (She promised her friend she would pay her back in a year with the same number of shares of security B). Then she bought security A with the proceeds obtained in the sales of security B shares and the cash of $2,549 she owned. Calculate the standard deviation of her portfolio. Report your answer in decimal form, rounded to 4 decimal points.Your portfolio had the values in the table below for the four years listed. There were no withdrawals or contributions of new funds to the portfolio. Calculate your average return over the 4-year period. (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Beginning Value Ending Value 2016 $60,618 $55,518 2017 55,518 64,938 2018 64,938 68,984 2019 68,984 70,380 The return for 2016 is enter your response here%. (Round to one decimal place.)
- a. Calculate both the arithmetic and the geometric average return of the following investment;Year 1 2 3 4Return 10.5% 12.2% -5.5% 2.8%(4 marks)b. Teena is considering investing in Stock A and stock B. She plans to invest $ 25,000 in the low riskstock and $ 50,000 in the high-risk stock. You have been given the following information about thesetwo stocks in the table below:Stock A BE(R) 15% 10? 25% 22%Correlation between A and B 0.20Based on the given information above, you are required to:i. Calculate the portfolio weightsii. Calculate the portfolio return.iii. Calculate the portfolio risk.iv. Compare portfolio risk with the individual stock risks and identify the benefit of thediversification of the portfolio.Saved a. You have just purchased the options listed below. Based on the information given, indicate whether the option is in the money, out of the money, or at the money, whether you would exercise the option if it were expiring today, what the dollar profit would be, and what the percentage return would be. (Enter "O" if there is no profit or return from not exercising the option. Round your answer to 2 decimal places.) Today's Stock In/Out of the Company Option Strike Price Money? (Click to select) Premium Exercise? Profit Return eBook АВС Call 10 $10.26 1.06 (Click to select) v АВС Put 10 $10.26 0.91 (Click to select) v Print (Click to select) ABC Call 25 $23.93 1.01 (Click to select) v АВС Put 25 $23.93 In the money (Click to select) v eferences 2.21 Out of the money b. Now suppose that time has passed and the stocks' prices have changed as indicated in the table below. Recalculate your answers to part a. In/Out of the Money? (Click to select) Today's Stock Company Option Strike…Ranking investments by expected returns What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. Round the answers to two decimal places. Do not round intermediate calculations. Buy a stock for $45 a share, hold it for 3 years, then sell it for $75 a share (the stock pays annual dividends of $3 a share). % Buy a security for $25, hold it for 2 years, then sell it for $60 (current income on this security is zero). Do not round intermediate calculations. % Buy a 1-year, 12 percent note for $950 (assume that the note has a $1,000 par value and that it will be held to maturity). Do not round intermediate calculations. %
