Compound return earned per year over a multiyear period

Assignment Help Financial Management
Reference no: EM13928047

Which one of the following is defined as the average compound return earned per year over a multiyear period?

Normal distribution of returns Variance of returns Geometric average returns Arithmetic average return Standard deviation of returns

Reference no: EM13928047

Questions Cloud

What would the annual yield to maturity be on the bond : Sweet Fruit, Inc. has a $1000 par value bond that is currently selling for $1280. It has an annual coupon rate of 9.90 percent, paid semi annually, and has 10-years remaining until maturity. What would the annual yield to maturity be on the bond if y..
According to the efficient markets hypothesis : According to the efficient markets hypothesis, professional investors will earn: excess profits over the long-term. a dollar return equal to the value paid for an investment. excess profits, but only on short-term investments. a return that "beats th..
Narrowest distribution of returns for the period : Which one of the following has the narrowest distribution of returns for the period 1926-2011?
What was the nominal risk premium : Last year, Paul invested $38,000 in Oil Town stock, $11,000 in long-term government bonds, and $8,000 in U.S. Treasury bills. Over the course of the year, he earned returns of 12.1 percent, 7.2 percent, and 4.1 percent, respectively. What was the nom..
Compound return earned per year over a multiyear period : Which one of the following is defined as the average compound return earned per year over a multiyear period? Normal distribution of returns Variance of returns Geometric average returns Arithmetic average return Standard deviation of returns
What is this excess return called : Investors require a 4 percent return on risk-free investments. On a particular risky investment, investors require an excess return of 7 percent in addition to the risk-free rate of 4 percent. What is this excess return called? Required return Inflat..
Machine has been fully depreciated and has no salvage value : Mississippi River Shipyards is considering the replacement of an 8-year-old riveting machine with a new one that will increase earnings before depreciation from $27,000 to $56,000 per year. The old machine has been fully depreciated and has no salvag..
If the financial markets are semi strong form efficient : If the financial markets are semi strong form efficient, then: every security offers the same rate of return. Only individuals with private information have a marketplace advantage. no one individual has an advantage in the marketplace. Only the most..
Total return on an investment to be a negative rate : Which one of the following could cause the total return on an investment to be a negative rate? Constant annual dividend amount Stock price that declines over the investment period Stock price that remains constant over the investment period Stock pr..

Reviews

Write a Review

Financial Management Questions & Answers

  To what extent can mr papp deduct each of these payments

Mr. Papp paid the following professional fees: To CPA for preparation of Form 1040...$4,200 To CPA for preparation of federal gift tax return...900 To attorney for drafting Mr. Papp's will...7,800 To attorney for estate tax planning advice...3,000 To..

  Why does a form rejecting agi

Historically, about 1 percent of Form 1040s are audited. Why does a Form 1040 rejecting $31,000 AGI and a standard deduction have much less than a 1 percent chance while a Form 1040 rejecting $912,800 AGI and  $214,790 itemized deductions has a much ..

  Price paid to the bondholder if the issuer calls the bond

A 7.4 percent corporate coupon bond is callable in five years for a call premium of one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond?

  Estimating the corporate cost of capital

Estimating the corporate cost of capital is:

  Discriminating auction and single-price auction

What is the difference between a discriminating auction and a single-price auction? How is the final price determined in a single-price auction? Why did the Treasury switch to a single-price auction?

  What are the prices of these bonds today

Bond X is a premium bond making annual payments. The bond has a coupon rate of 8.6 percent, a YTM of 6.6 percent, and has 19 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 6.6 percent, a YTM of 8.6..

  Financed by risk-free debt

A company is 35% financed by risk-free debt. The interest rate is 12%, the expected market risk premium is 9%, and the beta of the company's common stock is 1.5. What is the company cost of capital? What is the after-tax WACC, assuming that the compa..

  What is the net present value of the project

Suppose Palmer Properties is considering investing $2.6 million today (i.e., C0 = -2,600,000) on a new project that is expected to last for 7 years. The project is expected to generate annual cash flows of C1 = -250,000; C2 = 300,000, C3 = 500,000 an..

  Firm is considering normal-equally risky-mutually exclusive

McCall Manufacturing has a WACC of 10%. The firm is considering two normal, equally risky, mutually exclusive, but not repeatable projects. The two projects have the same investment costs, but Project A has an IRR of 15%, while Project B has an IRR o..

  How much will you pay for the policy

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $22,000 per year forever. If the required return on this investment is 5.80 percent, how much will you pay for the policy?

  Nonconstant growth stock valuation

Assume that the average firm in your company's industry is expected to grow at a constant rate of 5% and that its dividend yield is 8%. Your company is about as risky as the average firm in the industry, but it has just successfully completed some R&..

  Straight-line depreciat-what is average accounting return

A project has an initial cost of $35,000 and a four-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $1,100, $1,300, $1,600, and $1,800 a year fo..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd