Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

These are the yearly returns for stocks. YearReturn13.60%214.54%319.15%4-15.03%5-26.95%63.85%72.42%8-7.80%9-6.41%1018.69% If you invested a dollar at the beginning of the time frame, how much would you have

These are the yearly returns for stocks.

YearReturn13.60%214.54%319.15%4-15.03%5-26.95%63.85%72.42%8-7.80%9-6.41%1018.69%

If you invested a dollar at the beginning of the time frame, how much would you have at the end of year ten?

Select one:

a. $1.10 to $1.20

b. Less than $1.00

c. $1.00 to $1.10

d. More than $1.80

e. $1.20 to $1.30

f. $1.60 to $1.70

g. $1.30 to $1.40

h. $1.50 to $1.60

i. $1.70 to $1.80

j. $1.40 to $1.50

Q16: What was the geometric return for this time frame? That is, how much did you earn per year, compounded annually?

Select one:

a. 5.0% to 6.0%

b. Less than 0%

c. 0% to 1.0%

d. More than 8.0%

e. 2.0% to 3.0%

f. 4.0% to 5.0%

g. 1.0% to 2.0%

h. 6.0% to 7.0%

i. 3.0% to 4.0%

j. 7.0% to 8.0%

Q17: The arithmetic return for the 10-year period was:

Select one:

a. More than 8.0%

b. 7.0% to 8.0%

c. 5.0% to 6.0%

d. 0% to 1.0%

e. 4.0% to 5.0%

f. Less than 0%

g. 6.0% to 7.0%

h. 2.0% to 3.0%

i. 3.0% to 4.0%

j. 1.0% to 2.0%

Q18: What was the Standard Deviation of Returns for the 10-year period?

Select one:

a. 10.0% to 15.0%

b. 20.0% to 25.0%

c. More than 25.0%

d. 0% to 5.0%

e. 15.0% to 20.0%

f. 5.0% to 10.0%

Q19: Assume that returns follow a normal distribution [i.e., a "bell shaped curve"]. What range of returns would you expect 68% of the time?

Select one:

a. -20% to 35%

b. Years 2-6

c. 0% to 10%

d. 10% to 20%

e. -15% to 15%

f. -32% to 47%

g. Years 3-7

h. Years 4-8

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_2

Step: 3

blur-text-image_3

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

Money Talks Black Finance Experts Talk To You About Money

Authors: Fairley, Juliette

1st Edition

0471245828, 9780471245827

More Books

Students also viewed these Finance questions