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Firdavs [7]
3 years ago
11

You own a stock which has produced annual returns of 11 percent, 3 percent, 8 percent, and 14 percent over the past four years,

respectively. The arithmetic rate of return is _____ percent and the geometric rate of return is _____ percent.A) 8.50; 8.92B) 8.50; 18.92C) 9.00; 8.92D) 9.00; 9.92E) 9.00; 18.92
Business
1 answer:
Nana76 [90]3 years ago
6 0

Answer:

C) 9.00; 8.92

Explanation:

The arithmetic rate of return is given by:

R_{A} = \frac{11+3+8+14}{4} \\R_{A} = 9.00

The geometric rate of return is given by:

R_{G} =  (\sqrt[4]{(1.11*1.03*1.08*1.14)} -1) *100 \%\\R_{G} =  (1.0892-1) *100 \%\\R_{G} =  8.92

Therefore, the arithmetic rate of return is 9.00 percent and the geometric rate of return is 8.92 percent

The answer is C) 9.00; 8.92.

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John would like to save $1,500,000 by the time he retires in 30 years and believes he can earn an annual return of 8%. How much
leonid [27]

Answer:

he need to invest $13,241 each year to achieve his goal

Explanation:

Target Saving Amount = Future value = F = $1,500,000

Number of years = n = 30 years

Inyterest rate = r = 8% = 0.08

Invetment to be made = P = ?

Use following formula to calculate Invetment amount

F = P x ([1 + r]^n - 1 )/r

P = F / ([1 + r]^n - 1 )/r

P = 1,500,000 / ([1 + 0.08]^30 - 1 )/0.08

P = 1,500,000 / 113.2832

P = 13241.15

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3 years ago
Laura has an equity portfolio valued at $11.2 million that has a beta of 1.32. She has decided to hedge this portfolio using SPX
Nonamiya [84]

Answer:

Explanation:

Put Delta = call delta - 1 = 0.582 - 1 = -0.418

No of Options = (-11.2 million / (-0.418 × 1402)) × 1.32 = 25,227 options

No of Contracts = 25,227 / 100 = 252 contracts

6 0
3 years ago
The National Bureau of Economic Research is an independent, ______ organization not found within the government that observes an
Firlakuza [10]

Answer:

Private organisation

Explanation:

The National Bureau of Economic Research is a private organisation that disseminates economic research to academic communities, business professionals, and policy makers.

NBER's aim is to make sure there is greater understanding of how the economy works. It studies the effects of government policies on the economy, makes quantitative models of economic behaviour, and uses new statistical measurement tools.

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3 years ago
Why dont you guys use Question Cove or another service. Why do you like brainly so much?
Slav-nsk [51]

because I think people answered their questions really fast even though they don't sometimes

6 0
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Read 2 more answers
discuss the rationale of organizing an industrial strike in resolving employee dispute with the state,focusing on the detrimenta
Gennadij [26K]

Answer: The answer is given below

Explanation:

Strike is the refusal to work which is typically organized by body of employees as a method of protesting in an attempt to get a pay rise or other concessions from the employer.

Strike can be as a result of demand for wages or salary increment, better working conditions, better treatment at workplace and non-discrimination, towards employees.

Strikes can bring about potential benefits such as better working conditions, increase in pay, improved labor productivity, increase in work morale, and lower absenteeism. Itcsn also bring about economic costs to the society. Strikes results in negative impacts on employees, employers, consumers, stakeholders, the government, and the whole economy.

During strikes, there are less goods available for consumers, decrease in revenue on the part of employers, idle employees, and the economy is also affected badly.

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3 years ago
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