What is the geometric average return?

Assignment Help Portfolio Management
Reference no: EM131451628

The common stock of Mountain Farms has yielded 14.2 percent, 11.7 percent, 3.4 percent, -2.8 percent, and 15.8 percent over the past five years, respectively. What is the geometric average return?

a. 7.91 percent b. 8.03 percent c. 8.22 percent d. 8.27 percent e. 7.64 percent

A portfolio has an expected return of 13.4 percent. This portfolio contains two stocks and one risk-free security. The expected return on Stock X is 12.2 percent and on Stock Y it is 19.3 percent. The risk-free rate is 4.1 percent. The portfolio value is $48,000 of which $10,000 is the risk-free security. How much is invested in Stock X?

a. $21,548.19 b. $19,514.14 c. $18,478.87 d. $22,200.14 e. $16,904.72

Reference no: EM131451628

Questions Cloud

Explain the role of foreign direct investments : Macroeconomics Paper Assignment- "The Role of Foreign Direct Investments on economic development in Four Asian Tigers countries" 1995-2016.
Is the investment in the painting a good investment : What is the Future Value of the 2 million if the collector purchases the Cds? Is the investment in the painting a good investment?
Beneficiary of life insurance policy : You are the beneficiary of a life insurance policy. You can earn 6% compounded monthly on your money. Which option should you take and why?
How can bp begin to restore its reputation going forward : At the age of 14 months old, most children in North America and Europe receive a triple vaccination against three diseases: measles, mumps, and rubella.
What is the geometric average return? : What is the geometric average return?
Determine the price elasticity of the products : To determine the price elasticity of the products and how to manipulate them so as to meet the need of the customers in the market and manage competition
How much should you invest in the risk-free security : If you want the portfolio to have an expected return equal to that of the market, how much should you invest in the risk-free security?
Describe the security features within the application : HIM 220 : Determine the necessary requirements of applications to ensure they adhere to applicable regulations. Explain each requirement.
Define relationship between job satisfaction and absenteeism : What is the relationship between job satisfaction and absenteeism? Job satisfaction and turnover? Which is the stronger relationship?

Reviews

Write a Review

Portfolio Management Questions & Answers

  Relationship between two financial variables

Develop a general report highlighting your findings and recommendations to the investor. Be sure to link your findings to relevant economic and financial theories

  Weight used for equity in the computation

what would be the weight used for equity in the computation of Solar Shade's WACC?

  What is the treynor portfolio performance measure

What is the Treynor portfolio performance measure? What is the Jensen portfolio performance measure, and how can it be adapted to include multifactor models of risk and expected return?

  How is diversification measured in the statistical framework

Which fund had the highest degree of diversification over the sample period? How is diversification measured in this statistical  framework?

  Explain why the geometric and arithmetic mean returns

Explain why the geometric and arithmetic mean returns are not equal and whether one or the other may be more useful for investment decision making.

  What the paired trade suggests to you about implied view

Briefly discuss what this paired trade suggests to you about the manager's implied view as to: (1) the general direction of future interest rate movement.

  What percentage should your cash reserve contain

Suppose your first job pays you $28,000 annually. What percentage should your cash reserve contain? How much life insurance should you carry if you are unmarried? How much if you are married with two young children?

  Discussing each of the option pricing models

Write a short paper discussing each of the option pricing models and discussing the benefits and limitations of each model. Conclude with an explanation of which model represents the preferred model and/or whether each model should be used for specif..

  How do investors use options with the underlying security

How do investors use options with the underlying security or in combination with one another to create payoff structures tailored to a particular need or view of future market conditions?

  How much of nominal growth was due to real growth

Prepare a table showing the percentage change for each of the last 10 years in the Consumer Price Index. Discuss how much of nominal growth was due to real growth and how much was due to inflation.

  Find value of a european call option with an exercise price

Find the value of a European call option with an exercise price of $50 and find the value of a European put option with an exercise price of $50, using the binomial approach

  Final exam hi read the pdf and answer each question follow

hi read the pdf and answer each question follow the require.and the testbook each page needs i already put into the hw

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