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e . Calculate the cumulative wealth for McDonald's for this 1 0 - year period, assuming: $ 1 , 0 0 0 invested at the
e Calculate the cumulative wealth for McDonald's for this year period, assuming:
$ invested at the beginning of the years.
$ invested at the beginning of the years.
f The geometric mean return for the S&P for this year period was percent.
Calculate the cumulative wealth for the S&P for this year period, assuming $
invested at the beginning.
g Calculate the standard deviation of these years of returns for McDonald's using the
Excel function STDEV. Note: For this calculation, you can use either Rs or RRs
Based on the information in Table and assuming the risk information in this
table applies to the year period being considered here, is McDonald's more
risky than the S&P or less risky?
h What is the biggest factor explaining McDonald's returns for and
i For an investor who bought McDonald's stock on January and held it to
December at what annual return did this investment grow? State your answer
as an annual return.
j Assume an investor invested $ in McDonald's stock on January and held it
for years. Also assume that the geometric mean for these years is the same as the
geometric mean for the years Including the initial investment, how much
money would the investor have at the end of the years? In other words, what is the
cumulative wealth from this investment given an initial investment of $
k Calculate the annual return on McDonald's stock for the years
I. Assume you purchased shares of McDonald's stock on January the year
before the great financial crisis of Calculate the cumulative wealth of this position
at the close of business on December
m Assume that over the next five years the returns on the S&P are percent,
percent, percent, percent, and percent.
What will be the cumulative wealth per dollar invested in this index?
At what annual return did your money grow if you invested in this index at the
start of the five years?
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