Question
Match the situation or information needed with the appropriate type of return calculation. Situations: 1. You want to forecast future returns for a fund and
Match the situation or information needed with the appropriate type of return calculation.
Situations:
1. You want to forecast future returns for a fund and wonder what the expected return might be in a given year.
2. You have invest $100 every month in a retirement account and what to know what your average return has been.
3. You invested a lump sum into a investment many years ago and over time you reinvested all your income from the investment. Now you want to find out the how much your initial investment has grown every year on average.
4. You want to forecast market returns and have information on the probability of a recession, a steady market, and a strong market.
Type of Return: A. Arithmetic mean returns. B. Dollar weighted returns. C. Geometric mean return. D. Scenario returns E. Holding period returns. F. Annualized returns.
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