Jennifer's portfolio experiences the following returns over a three-year period: 12%, -5%, 8%. What is her geometric average return? 4.7% 5.0% 8.0% 8.7%
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Jennifer's portfolio experiences the following returns over a three-year period: 12%, -5%, 8%. What is her geometric average return?
4.7%
5.0%
8.0%
8.7%
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- The returns on a portfolio over the last five years were: -5.2 percent, 21.6 percent, 4.5 percent, 11.7 percent, and 5.9 percent. What is the standard deviation of these returns?Your portfolio has provided you with returns of 8.6 percent, 14.2 percent, -3.7 percent, and 12.0 percent over the past four years. respectively. What is the geometric average return for this period? a). 7.78%b). 5.99%c). 7.54%Your portfolio has provided you with returns of 4.65 percent, 2.33 percent, 11.85 percent, and -15.97 percent over the past four years, respectively. What is the geometric average return (in percent) for this period? Answer to two decimals
- You have a portfolio of three assets at the beginning of the year: Asset 1 is 30% of the portfolio, Asset 2 is 40% of the portfolio, and Asset 3 is 30% of the portfolio. During the year, Asset 1 has a return of 4%, Asset 2 has a return of 12%, and Asset 3 has a return of -20%. What was the return on your portfolio for the year?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…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: a)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? b)Following is forecast for economic situation and Leon’s portfolio returns next year, calculate the expected return, variance and standard deviation of the portfolio. 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 (CAPM)?
- David established an investment portfolio of two blue chips four years ago: Gold share and Silver Bond. Gold share accounts for 65% of his investment portfolio. Required: If David’s portfolio has provided the returns of 9.5%, 11.3%, - 12.5% and 15.6% over the past four years, respectively. Calculate geometric average return of the portfolio for this period? Assume that the below data is available for David’s portfolio performance, calculate the expected return, variance and standard deviation of the portfolio. Gold Share Silver Bond Expected return 26.5% 10.5% Standard Deviation of return 6% 2% Correlation of coefficient (p) 0.55 Assume that expected return of the Gold share in David’s portfolio is 14.5%. The share’s beta coefficient is 1.5. Market risk premium is 7.5. Calculate the risk-free rate using Capital Asset Pricing Model Assume that David bought 2000 of Gold shares in his portfolio for a price of $75 each, the dividend paid for this…An investment portfolio has equal proportions invested in five stocks.The expected returns and standard deviations (both in percent per year) are (8, 3),(5, 2), (12, 8), (7, 9), (14, 15). What are average return and standard deviation forthis portfolio?Year-to-date, Oracle had earned a −1.34% return. During the same time period, Valero Energy earned 7.96% and McDonald's earned 0.88%. If you have a portfolio made up of 30 percent Oracle, 25% Valero Energy, and 45 percent McDonald's, what is your portfolio return?"
- Following is forecast for economic situation and Rachel’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 0.35 - 5% Growth 0.45 15% Strong Growth 0.20 30%David established an investment portfolio of two blue chips four years ago: Gold share and Silver Bond. Gold share accounts for 65% of his investment portfolio. Required: If David’s portfolio has provided the returns of 9.5%, 11.3%, - 12.5% and 15.6% over the past four years, respectively. Calculate geometric average return of the portfolio for this period? Assume that the below data is available for David’s portfolio performance, calculate the expected return, variance and standard deviation of the portfolio. Assume that expected return of the Gold share in David’s portfolio is 14.5%. The share’s beta coefficient is 1.5. Market risk premium is 7.5. Calculate the risk-free rate using Capital Asset Pricing Model Assume that David bought 2000 of Gold shares in his portfolio for a price of $75 each, the dividend paid for this stock is $7/stock each year. The current market price of this share is $135. Calculate the capital gain yield of this investment after four yearsUsing the data in the following table, LOADING... , consider a portfolio that maintains a 75% weight on stock A and a 25% weight on stock B. a. What is the return each year of this portfolio? b. Based on your results from part (a), compute the average return and volatility of the portfolio. c. Show that (i) the average return of the portfolio is equal to the (weighted) average of the average returns of the two stocks, and (ii) the volatility of the portfolio equals the same result as from the calculation in Eq. 11.9. d. Explain why the portfolio has a lower volatility than the average volatility of the two stocks. Question content area bottom Part 1 a. What is the return each year of this portfolio? Enter the return of this portfolio for each year in the table below: (Round to two decimal places.) Year 2010 2011 2012 2013 2014 2015 Portfolio enter your response here% enter your response here% enter your response…