1. Your portfolio had the values in the table below for the four years listed. There were no withdrawals or contributions of newfunds to the portfolio. Calculate your average return over the 4-year period. (Click on the icon herecontents of the data table below into a spreadsheet.)in order to copy itsBeginning ValueEnding Value2016$60,827$55,697201755,69764,666201864,66668,386201968,38670,124Review OnlyClick the icon to see the Worked Solution.The return for 2016 is%. (Round to one decimal place.)The return for 2017 is%. (Round to one decimal place.)The return for 2018 is%. (Round to one decimal place.)The return for 2019 is%. (Round to one decimal place.)The average return is%. (Round to one decimal place.)

Return can be calculated as: Return = Ending Value - Beginning ValueBeginning Value

Answered: . Calculate your average return over…

Business

Finance

. Calculate your average return over the 4-year period.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

See similar textbooks

Similar questions

Your portfolio had the values in the table below for the four years listed. There were no withdrawals or contributions of new funds to the portfolio. Calculate your average return over the 4-year period. (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Beginning Value Ending Value 2016 $60,618 $55,518 2017 55,518 64,938 2018 64,938 68,984 2019 68,984 70,380 The return for 2016 is enter your response here%. (Round to one decimal place.)
Assuming the below annual rates of return: Annual Rates of Return: Wamart - 12.36% Coca Cola - 25.51% Pfizer - 14% CVS - 32.99% Berkshire Hathaway - 29.66% Assume that you initially invested $1,000,000 in the portfolio and that the distribution of the annual rate of return of the portfolio is normal. What is the distribution of the return of the portfolio 20 years after its formation? Provide the graph of the distribution of the return of the portfolio.
Your portfolio had the values in the following table for the four years listed: Data table (Click on the icon here in order to copy its contents of the data table below into a spreadsheet.) Beginning Value Ending Value 2016 $59,462 $55,536 2017 55,536 64,852 2018 64,852 67,183 2019 67,183 70,997 . a. Calculate your return for each year over the 4-year period. Then calculate the average return over the 4-year period. b. Calculate the portfolio standard deviation. Question content area bottom Part 1 The return for 2016 is enter your response here%. (Round to two decimal places.)
J.P. Morgan Asset Management publishes information about financial investments. Overthe past 10 years, the expected return for the S&P 500 was 5.04% with a standard deviation of 19.45% and the expected return over that same period for a core bonds fund was5.78% with a standard deviation of 2.13% (J.P. Morgan asset Management, guide to theMarkets, 1st quarter, 2012). The publication also reported that the correlation betweenthe S&P 500 and core bonds is −.32. You are considering portfolio investments that arecomposed of an S&P 500 index fund and a core bonds fund.a. Using the information provided, determine the covariance between the S&P 500 andcore bonds.b. Construct a portfolio that is 50% invested in an S&P 500 index fund and 50% in a corebonds fund. In percentage terms, what are the expected return and standard deviationfor such a portfolio?c. Construct a portfolio that is 20% invested in an S&P 500 index fund and 80% investedin a core bonds fund. In…
Over the past 3 years, your stock fund earned returns of 10%, -8%, and 12%. What average annual compounded rate did you earn? That is, what is the geometric average rate of return?
Stocks A and B have the following historical returns:Year Stock A’s Returns, rA Stock B’s Returns, rB2003 (18%) (24%)2004 44 242005 (22) (4)2006 22 82007 34 56a. Calculate the average rate of return for each stock during the 5-year period.Assume that someone held a portfolio consisting of 50% of Stock A and 50%of Stock B. What would have been the realized rate of return on the portfolioin each year? What would have been the average return on the portfolio duringthis period?b. Now calculate the standard deviation of returns for each stock and for theportfolio. Use Equation 6-5.c. Looking at the annual returns data on the two stocks, would you guess thatthe correlation coefficient between returns on the two stocks is closer to 0.8 orto 0.8?d. If you added more stocks at random to the portfolio, which of the followingis the most accurate statement of what would happen to p?(1) p would remain constant.(2) p would decline to somewhere in the vicinity of 20%.(3) p would decline to…
The benchmark portfolio has an asset allocation of 65% stocks, 30% bond and 5% cash. The annual returns on these three asset classes are 7.70%, 4.10% and 1.30%. Over the same time period, a portfolio manager had an asset allocation of 72% stocks, 23% bonds and the balance in cash. The returns on the three asset classes in the manager's portfolio were 7.69%, 4.20% and 1.51% respectively. What was the contribution to the manager's value-added, in % (to three decimal places) from his asset allocation skills?
The benchmark portfolio has an asset allocation of 65% stocks, 30% bond and 5% cash. The annual returns on these three asset classes are 7.20%, 3.90% and 1.10%. Over the same time period, a portfolio manager had an asset allocation of 72% stocks, 22% bonds and the balance in cash. The returns on the three asset classes in the manager's portfolio were 7.48%, 4.13% and 1.56% respectively. What was the contribution to the manager's value-added, in % (to three decimal places) from his selection skills?
The risk-free rate is currently 8.1%. Use the data in the accompanying table for the Fio family’s portfolio and the market portfolio during the year just ended to answer the questions that follow. Data Item Fio’s Portfolio Market Portfolio Rate of return 12.8% 11.2% Standard deviation of return 15.5% 9.6% Beta 1.10 1.00 Calculate Sharpe’s measure for the portfolio and the market. Compare the two measures, and assess the performance of the Fios’ portfolio during the year ended. Calculate Treynor’s measure for the portfolio and the market. Compare the two measures, and assess the performance of the Fios’ portfolio during the year ended. Calculate Jensen’s measure. Use it to assess the performance of the Fio’s portfolio during the just ended.
What is the standard deviation of the returns of a portfolio that produced returns of -14%, 30%, and -19% over the last three years? (answer in percent, but without the percent sign, e.g. "7.25" is 7.25%)
Leon has in his investment a portfolio that paid him the rate of returns of 14 %, -13%, 15.6%, 17% and 19.5% over the past five years. Required: Calculate the arithmetic average return (AAR) and geometric average return (GAR) of the portfolio? If someone asks you what is the actual compounding rate of return of Leon’s portfolio over the past five year, which one (AAR or GAR) will be a better answer? (2 marks) Following is forecast for economic situation and Leon’s portfolio returns next year, calculate the expected return, variance and standard deviation of the portfolio. (4 marks) State of economy Probability Rate of returns Mild Recession 0.25 -2.5% Normal 0.45 13.5% Growth 0.30 20% c) Assume that expected return of the stock A in Leon’s portfolio is 13.2%. Beta of this stock is 1.2, risk free rate is 3.5%. Calculate market portfolio rate of return, which is used to compute the expected return of this stock by Capital Asset Pricing Model…
Based on five years of monthly data, you derive the following information forthe companies listed: Company SDi rm Padma 11.10% 0.82 Meghna 12.60% 0.63 Jamuna 6.60% 0.45 Karnafully 9.70% 0.70 SD on Market 7.60% 1.00 Assuming a risk-free rate of 9% and expected return for the market portfolio is 16 % compute the expected (required) return for all the stocks.

SEE MORE QUESTIONS

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS