Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer all parts has it is apart of one big question, thanks! Please show your work. 1) Susan Bright will get returns of 18%,

Please answer all parts has it is apart of one big question, thanks! Please show your work.

1) Susan Bright will get returns of 18%, -20.3%, -14%, 17.6%, and 8.3% in the next five years on her investment in CoffeeTown, Inc. stock, which she purchases for $73,419.66 today.

What is the arithmetic average return on her stock if she sells it five years from today?

a) 1.92%

b) 3.98%

c) 6.47%

d) 7.11%

2) Susan Bright will get returns of 18%, -20.3%, -14%, 17.6%, and 8.3% in the next five years on her investment in CoffeeTown, Inc. stock, which she purchases for $73,419.66 today.

What is the geometric average return on her stock if she sells it five years from today?

a) -2.33%

b) .59%

c) 3.67%

d) 4.88%

3) Susan Bright will get returns of 18%, -20.3%, -14%, 17.6%, and 8.3% in the next five years on her investment in CoffeeTown, Inc. stock, which she purchases for $73,419.66 today.

How much will Susan's stock be worth if she sells it five years from today?

a) 71,423.85

b) 73.419.66

c) 75,628.75

d) 80,333.40

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computational Finance And Its Applications

Authors: C. A. Brebbia, M. Costantino

1st Edition

1853127094, 978-1853127090

More Books

Students also viewed these Finance questions

Question

How do people develop skills?

Answered: 1 week ago