Answer:
Explanation:
Assume the initial invest at the beginning is $100.
The investment at end of year 4 is:
100 x 1.16 x 1.11 x 1.1 x 1.1 = 155.80
a) CAGR over the 4 years = (155.8 / 100 ) ^ (1/4) = 11.72%
b) Average annual return over 4 years = (16% +11% + 10% +10%) /4 = 11.75%
c) Since the returns over the 4 year period are not much volatile, average annual return is a better measure.
If the investment's returns are independent and identically distributed, Average annual return will be the better measure because there is no correlation between returns over the years and thus there is no point to take into consideration the compounding effect by using CAGR.
Answer: The market will experience more demand and the prices of goods will rise up.
Explanation: According to a law, the higher the demand , there is a corresponding increase in the price. As a result of the lower interest rate of mortgage loans, more people have access to loan which leads to an astronomical increase in the number of house owners. Market experience more demand and therefore the prices of housing will rise up. It’s only obeying the law of demand and supply which states that the greater the demand, the higher the price.
A situation that would most likely cause demand for milk to rise in France is French consumers expect the price of milk to increase in the future.
<h3>What causes an increase in the demand for a product?</h3>
The demand for a product is affected by:
- future expectations
- change in the price of other goods
- Change in the income of consumers
When it is expected that the price of a product would increase in the future. Consumers would want to buy the product now when it is cheaper so as to save money.
For more information about the change in demand, please check: brainly.com/question/25871620
