An investment produced annual rates of return of 5%, 12%, 7%, 11% and 3% respectively over the past five years. What is the standard deviation of these returns? O a. 1.9% O b. 2.7% Oc 4.6% Od. 3.8%
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- An investment produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past four years. What is the (sample) standard deviation of these returns? A. 3.8% B. 3.6% C. 3.2% D. 2.7%An investment produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past four years. What ?is the average return 9% (A) 9 (B 12% (C 12 (D)An investment earns 7% the first year, earns 12% the second year, and loses 10% the third year. The geometric average return over the three years was ________ Select one: a. 9.65% b. 2.55% c. 3% d. 3.59% e. 9.67%
- Two investments generated the following annual returns: Investment X 13% 17 24 19 8 20X0 20X1 20X2 20X3 20X4 a. What is the average annual return on each investment? Round your answers to one decimal place. The average annual rate of return on X: The average annual rate of return on Y: b. What is the standard deviation of the return on investments X and Y? Round your answers to two decimal places. -Select- % % Standard deviation of X: Standard deviation of Y: c. Based on the standard deviation, which investment was riskier? was riskier. Investment Y 23% 26 14 25 20Calculate the geometric return of an investment with five year returns of 10%, (15%), 12%, 8% and (5%). Multiple Choice О 2.00% О 6.33% О 3.11% О 7.44% О 5.22%The average rate of return for this investment is: a. 53% b. 18% c. 10% d. 21%
- c. If the historical annual returns of an Investment in various Economic Conditions (with their respective probabilities) over the last 35 years are the following, what is the Expected Return on that investment? Expected Real Economic Propabilities Returns Conditions Poor Normal Вoom 4% 0.25 11% 0.4 17% 0.35The series of returns of a single investment are presented as follows; Beginning value 100 115.0 138.0 Year 1 2 3 End value 115.0 138.0 110.4 i. compute the Arithmetic mean of the investment. ii. calculate the Geometric mean of the investment. iii. With an appropriate illustration argue which one of the two measures issupeConsider the following investment alternatives: Investment Rate Compounding A 6.502% Annual Daily Quarterly 6.3234% C 6.3969% 6.3867% Monthly Which alternative offers you the highest effective rate of return? A. Investment A B. Investment B C. Investment C D. Investment D
- An investment has doubled in 8 years. What is the annually compounded rate of return? Select one: a. 5.77% b. 10.14% c. 7.89% d. 9.05%Consider the following investment alternatives: Investment Rate Compounding 6.917% Annual 6.7123% Daily Quarterly Monthly 6.792% 6.7775% Which alternative offers you the highest effective rate of return? O A. Investment A O B. Investment B O C. Investment C O D. Investment D ABCDAn asset has an average return of 10.79 percent and a standard deviation of 22.71 percent. What is the most you should expect to earn in any given year with a probability of 16 percent? Multiple Choice O 57.34% 33.50% 23.28% 34.63% 11.92%