An investment earns 7% the first year, earns 12% the second year, and loses 10% the third year. The geometric average return over the three years was ________ Select one: a. 9.65% b. 2.55% c. 3% d. 3.59% e. 9.67%
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An investment earns 7% the first year, earns 12% the second year, and loses 10% the third year. The geometric average return over the three years was ________
9.65%
2.55%
3%
3.59%
9.67%
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- Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)An investment has had returns of 15 percent, 10 percent, -16 percent, and 27 percent over the last four years. What is the geometric average return of this investment over the last four years? A. 76.88% B. 7.78% C. 34.95% D. 9%An investment of $100 produces rate of return as followsIn year 1: a gain of 10 percentIn year 2: a loss of 5% percentIn year 3: a loss of 8 percentIn year 4: a gain of 3 percent.Calculate the value of the investment at the end of the fourth year and calculate the mean annual rate of return.
- An investment earns 10% the first year, 15% the second year and loses 12% the third year. Your total compound return over the three years was _______.A $90,000 investment is made. Over a 5-year period, a return of $30,000 occurs at the end of the first year. Each successive year yields a return that is $3,000 less than the previous year’s return. If money is worth 5%, use agradient series factor to determine the equivalent present worth for theinvestment.You invest $94.1, and your investment account shows $107.9 at the end of year one, $97.9 at the end of year two, and $107.1 at the end of year three. Calculate the Annual Holding Period Return (HPR) over the full period.
- Assume the returns from holding an asset are normally distributed. Also assume the average annual return for holding the asset a period of time was 15.3 percent and the standard deviation of this asset for the period was 33.2 percent. Use the NORMDIST function in Excel® to answer the following questions. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 3 decimal places, e.g., 32.161.) b. What is the approximate probability that your money will triple in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 8 decimal places, e.g., 32.16161616.)Calculate the geometric (average) return over the 5-year investment period. Year Price 0 19 1 22 2 20 3 23 4 25 5 27 Round your answer to 4 decimal places. For example, if your answer is 3.205%, then please write down 0.0321.Kynan has an investment with the following annual returns for four years: • Year 1: 10% • Year 2: -3% • Year 3: 5% • Year 4: 11% What is the arithmetic average? The answer can be as a whole number or decimalKynan has an investment with the following annual returns for four years: • Year 1: 10% • Year 2: -3% • Year 3: 5% • Year 4: 11% What is the arithmetic average? The answer can be as a whole number or decimal
- An investment costs $465 and is expected to produce cash flows of $100 at theend of Year 1, $200 at the end of Year 2, and $300 at the end of Year 3. What is theexpected rate of return on this investment? (11.71%)An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1–4, with all monetary amounts being in real dollars. Inflation is running 7% per year over that time. Also, the real rate of return is 15% per year. Determine the present worth of the investment using both real dollars and then-current dollars.If a $31,000 investment grew to $43,005 in 6 1/2 years of quarterly compounding, what effective rate of return was the investment earning?
