Reference no: EM131188355
1. An investor purchases a, asset on July 3 2009 for $32,000, which is currently valued at $32,250. The asset generated cash flows of $3,000 over this period. The investor
a. experiences a realized gain of $250 and e recognized gain of $3,250
b. experiences an unrealized gain of $3,250 and income of $3,000
c. experiences an unrealized gain of $250 and income of $3,000
d. experiences an realized gain of $250 and income of $3,000
Following are the historical returns for Company A Year A
2011 12.0%
2012 3.0%
2013 7.0%
2014 -5.0%
2015 6.0%
Based on the information from 2011 through 2015:
2. Calculate the expected return for 2016 for Company A (artithmetic average)
3. Calculate the sample standard deviation for Company A (sample)
4. Calculate the geometric average for Company A
5. Based on a normal distribution and using the arithmetic mean avereage for Company A, which is true
a. 34% of the historical return fell within the range of -1.52% and 10.92%
b. 68% of the historical return fell within the range of -1.37% and 10.64%
c. 68% of the historical return fell within the range of -1.52% and 10.92%
d 68% of the historical return fell within the range of -1.668% and 10.86%
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