uppose a man invested $300 at the end of 1900 in each of three unds that tracked the averages of stocks, bonds, and cash, espectively. Assuming that his investments grew at the rates iven in the table to the right, approximately how much would each vestment have been worth at the end of 2007? Category Stocks Bonds Cash is investment in the fund tracking stocks would be worth approximately $ Do not round until the final answer. Then round to two decimal places as needed.) Average Annual Returm 6.2% 2.1% 0.8%

uppose a man invested $300 at the end of 1900 in each of three unds that tracked the averages of stocks, bonds, and cash, espectively. Assuming that his investments grew at the rates iven in the table to the right, approximately how much would each vestment have been worth at the end of 2007? Category Stocks Bonds Cash is investment in the fund tracking stocks would be worth approximately $ Do not round until the final answer. Then round to two decimal places as needed.) Average Annual Returm 6.2% 2.1% 0.8%

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter2: Descriptive Statistics

Section: Chapter Questions

Problem 17P: Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual...

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Suppose a man invested $250 at the end of 1900 in each of three funds that tracked the averages of stocks, bonds, and cash, respectively. Assuming that his investments grew at the rates given in the table to the right, approximately how much would each investment have been worth at the end of 2012? Category Stocks Bonds Cash His investment in the fund tracking stocks would be worth approximately $ (Do not round until the final answer. Then round to two decimal places as needed.) Average Annual Return 6.7% 2.2% 0.9%
Suppose a man invested $250 at the end of 1900 in each of three funds that tracked the averages of stocks, bonds, and cash, respectively. Assuming that his investments grew at the rates given in the table to the right, approximately how much would each investment have been worth at the end of 2012? Category Average Annual Return Stocks 6.6% Bonds 2.1% Cash 0.6% His investment in the fund tracking stocks would be worth approximately $ (Do not round until the final answer. Then round to two decimal places as needed.) His investment in the fund tracking bonds would be worth approximately $ (Do not round until the final answer. Then round to two decimal places as needed.) His investment in the fund tracking cash would be worth approximately $ (Do not round until the final answer. Then round to two decimal places as needed.)
Suppose that you initially invested 10,000 in the Stivers mutual fund and 5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table: Which of the two mutual funds performed better over this time period?
You purchased a stock at a price of $24. A year later the stock is worth $29, and during the year it paid $1.0 in dividends. What was the rate of return you earned on this investment? Show your answer in percent (but without the percent sign), and to one decimal place. E.g. 4.67% should be inputted as 4.7
Suppose that at the beginning of Year 1 you invested $10,000 in the Stivers mutual fund and $5,000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Mean annual return (to 3 decimals) % Year Year 1 $10,700 Year 2 $11,900 Year 3 $12,900 Year 4 $13,900 Year 5 $15,000 Year 6 $16,000 Year 7 $17,100 Year 8 $18,100 Compute the mean annual return for the Stivers mutual fund and for the Trippi mutual fund. Do not round intermediate calculations. Stivers Trippi % Stivers Trippi $5,600 $6,400 $7,000 $7,600 $8,600 $9,300 $9,900 $10,700
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. %
An investor purchases a mutual fund share for $100.2. The fund pays dividends of $2.2, distributes a capital gain of $1.1, and charges a fee of $3 when the fund is sold one year later for $95.3. What is the net rate of return from this investment? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))
Suppose that at the beginning of 2004 you invested $l0,000 in the Stivers mutual fund and $5000 in the Trippi mutual fund. The value of each investment at the end of each subsequent year is provided in the table below. Which mutual fund performed better? Year Stivers Trippi 2004 11,000 5,600 2005 12,000 6,300 2006 13,000 6,900 2007 14,000 7,600 2008 15,000 8,500 2009 16,000 9,200 2010 17,000 9,900 2011 18,000 10,600
You are also given the following table of average returns over the last 50 years: Stocks T-Bonds T-Bills ArithmeticGeometricArithmeticGeometricArithmeticGeometric 0.117 0.109 0.063 0.058 0.041 0.037 If you were asked to compute the equity risk premium for Steel Products, using the historical approach, what would your best estimate be? The largest investor in Steel Products is the owner/founder who owns 20% of the stock. Is she also the marginal investor in this stock? If your answer is yes write 1 and if your answer is No write 2 in the box.
Suppose that you initially invested $10,000 in the Stivers mutual fund and $5,000 in theTrippi mutual fund. The value of each investment at the end of each subsequent year isprovided in the table:Year Stivers ($) Trippi ($)1 11,000 5,6002 12,000 6,3003 13,000 6,9004 14,000 7,6005 15,000 8,5006 16,000 9,2007 17,000 9,9008 18,000 10,600Which of the two mutual funds performed better over this time period?
A portrollo consists of assets with the following expected returns: Technology stocks Pharmaceutical stocks Utility stocks Savings account a. What is the expected return on the portfolio if the investor spends an equal amount on each asset? Round your answer to two decimal places. % 26% 16 9 4 b. What is the expected return on the portfolio if the investor puts 53 percent of available funds in technology stocks, 15 percent in pharmaceutical stocks, 14 percent in utility stocks, and 18 percent in the savings account? Round your answer to two decimal places. %
An investor buys shares in a mutual fund for $22. At the end of the year the fund distributes a dividend of $0.52, and after the distribution the net asset value of a share is $24.85. What is the investor's percentage return on the investment? Round your answer to two decimal places. 1