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need help with question 14 and 15. ththanks anks Question 14 Assume you invest $1 in the underlying asset or portfolio at the beginning of

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need help with question 14 and 15. ththanks anks

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Question 14 Assume you invest $1 in the underlying asset or portfolio at the beginning of period 1. What is the value of wealth at the end of period 5 (to nearest cent)? (a) $1.32 (b) $1.35 (c) $1.36 (d) $1.43 (e) None of the above Question 15 Given the standard deviation of 15.7% and assuming independent returns, what is the standard deviation of wealth over 3 periods (to the nearest decimal place)? (a) 22.2% (b) 27.2% (c) 47.1% (d) 54.9% (e) 68.6% Question 16 Assume that the arithmetic mean of the series is adjusted towards an expected per-period return of 5%. After this adjustment, what is the probability of loss under non-parametric (i.e. data-based) methods? (a) 20% (b) 32% (c) 38% (d) 40% (e) 60%Questions 12 to 16 refer to the following 5-period sequence of gross returns plus the supplementary information provided below: Period Return 16% -1% 30% 4 -10% 5 2% Supplementary information: Standard deviation of series 15.7% Risk-free rate 3.0%

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