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- “Sydney as a whole has grown by an average of 6.83% each year for the past 10 years, according to Residex in December last year” Source: http://www.yourmortgage.com.au/article/how-long-does-it-take-for-your-property-to-double-in-value-78819.aspx. Other things being equal, an increase in houses price with no change in expected rental growth indicates lower future returns to housing. True FalseTen annual returns are listed in the following table: 19.5% 16.5% 17.8% - 49.8% a. What is the arithmetic average return over the 10-year period? b. What is the geometric average return over the 10-year period? c. If you invested $100 at the beginning, how much would you have at the end? (Click on the following icon in order to copy its contents into a spreadsheet.) 43.3% 1.7% 44.9% - 16.9% 46.3% -3.7%What is the geometric average return over one year if the yearly returns are -9%, 8%, 5%, and 14%, respectively?
- An investment has doubled in 8 years. What is the annually compounded rate of return? Select one: a. 5.77% b. 10.14% c. 7.89% d. 9.05%What is the Effective Annual Return (EAR) if the Annual Percentage Rate (APR) is 15% compounded monthly? Select one: a.16.08% b.15.7% c.15% d.16.55%In 2011, home prices and mortgage rates fell so far that in a number of cities the monthly cost of owning a home was less expensive than renting. The following data show the average asking rent for 10 markets and the monthly mortgage on the median priced home (including taxes and insurance) for 10 cites where the average monthly mortgage payment was less than the average asking rent (The Wall Street Journal, November 2627, 2011). a. Develop a scatter chart for these data, treating the average asking rent as the independent variable. Does a simple linear regression model appear to be appropriate? b. Use a simple linear regression model to develop an estimated regression equation to predict the monthly mortgage on the median priced home given the average asking rent. Construct a plot of the residuals against the independent variable rent. Based on this residual plot, does a simple linear regression model appear to be appropriate? c. Using a quadratic regression model, develop an estimated regression equation to predict the monthly mortgage on the median-priced home, given the average asking rent. d. Do you prefer the estimated regression equation developed in part (a) or part (c)? Create a plot of the linear and quadratic regression lines overlaid on the scatter chart of the monthly mortgage on the median-priced home and the average asking rent to help you assess the two regression equations. Explain your conclusions.
- Assume that in January 2020, the average house price in a particular area was $267,500. In January 2000, the average price was $186,000. What was the annual 'increase in the price of the average house sold? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual increase in selling price 1.89 %The past five monthly returns for PG&E are −3.47 percent, 4.63 percent, 4.07 percent, 6.92 percent, and 3.88 percent. What is the average monthly return? (Round your answer to 3 decimal places.) Average Return: ______.___%Average Return The past five monthly returns for K and Company are 5.15 percent, 5.03 percent, -1.15 percent, 4.15 percent, and 8.15 percent. What is the average monthly return?
- If the velocity of circulation is constant, real GDP is growing at 3 percent a year, the real interest rate is 2 percent a year, and the nominal interest rate is 7 percent a year, calculate the inflation rate, the growth rate of money, and the growth rate of nominal GDP.Over the past few years, housing costs have increased at a rate of 6% per year. If this trend were to continue, how many years would it be before a house doubled in value? 18 years 6 years 12 years 9 years.Questions 9-10. The fair market rental rate for Columbus was $730 in 2013 and $551 in 2003 Interpret the average rate of change for rent in Columbus during this period. Rental rates have increased $17.90 per year during the past 10 years. Rental rates have increased a total of $17.90 in the past 10 years. There has been a $17.90 decrease in rental rates over the past 10 years. There has been a $17.90 decrease per year in rental rates over the past 10 years.
