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- What is the geometric average return over one year if the yearly returns are -9%, 8%, 5%, and 14%, respectively?Calculate the rate of return (ROR) using the formula: ROR = (Net annual profit/investment)*100 With rate of interest = 10%Approximately, what is the value of PG (present worth of arithmetic gradient) if G=185, n=7 years, and i= 7.5% per year?
- What is the dollar-weighted return on a $100 investment that generates annual returns of $20, $15, $10, and $130, respectively in four years?You are looking at an investment that has an effective annual rate of 14 percent. (show answers and excel formula equations) a. What is the effective semiannual return? b. What is the effective quarterly return? c. What is the effective monthly return?Calculate the geometric (average) return over the 5-year investment period. Year Price 0 19 1 22 2 20 3 23 4 25 5 27 Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.
- Ten annual returns are listed in the following table: 19.5% 16.5% 17.8% - 49.8% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? (Click on the following icon in order to copy its contents into a spreadsheet.) 43.3% 1.7% 44.9% - 16.9% 46.3% -3.7%If annual returns for an asset are normally distributed with a mean of 8% and a standard deviation of 20%, why is the probability of achieving an average compounded annual return of at least 8% over 10 years less than 50%?2. Consider an investment that makes 20% one year and loses 20% the next year. Compute the following returns for this investment: a. The arithmetic average yearly return 000.12 b. The geometric average yearly return (to two decimal places in percentage terms, e.g., 5.13%) c. The total compound return over the 2-year period
- The present worth of income from an investment that follows an arithmetic gradient was projected to be P 475,000. Ifthe income in year one is expected to be P 25,000, how much would the gradient have to be in each year through year 8 if the interest rate is 10% per year?Finding Forward Rates Suppose the following yield curve: 1-period rate = 4.75%, 2-period rate=4.85%, 3-period rate= 4.90%, 4 period rate=5.01%. What is the 2 year forward rate in 2 years? What is 1 year rate in 2 years?If the Nominal (APR) rate of return for an investment is 10.15% compounded quarterly, what is the Effective Annual Rate of return (EAR or EFF)?