1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lina2011 [118]
3 years ago
8

The geometric average annual return for a large capitalization stock portfolio is 10% for ten

Business
1 answer:
34kurt3 years ago
6 0

Answer:

B) 8.65%

Explanation:

Geometric Average Return = [(1 + r1) * (1 + r2) * - - - - - * (1 + rN)]1/N - 1

Geometric Average Return = [(1 + 0.10)^10 * (1 + 0.06)^5]^1/15 - 1

Geometric Average Return = [1.10^10 * 1.06^5]^1/15 - 1

Geometric Average Return = [2.59374*1.33823]^1/15 - 1

Geometric Average Return = (3.471021)^1/15 - 1

Geometric Average Return = 1.08650188155 - 1

Geometric Average Return = 0.08650188155

Geometric Average Return = 8.65%

You might be interested in
Lyon, a cash-basis taxpayer, died on January 15, Year 2. In Year 2, the estate executor made the required periodic distribution
tensa zangetsu [6.8K]
Lyon need a different job I think. Cause that what’s 20thousa d less then what my mothers in law makes?
7 0
3 years ago
In March 2017, Amazon and Clorox reported nearly identical earnings per share, but the stock price of Amazon was more than six t
adoni [48]

Answer:

c. investors see better long-term prospects for Amazon

Explanation:

As we know that Amazon has the more customer base in the market due to which the shareholder predicted the expected profit in upcoming years. The company could run in long run. Even the ompany suffered huge losses due to discount provided but the investors are ready to invest in this company as they seen there is a better and long term prospects

Therefore according to the given situation, the option c is correct

3 0
3 years ago
Which of the following is true? Group of answer choices An excise subsidy has only a substitution effect since the subsidy artif
Nadya [2.5K]

Answer:

An excise subsidy has only a substitution effect since the subsidy artificially lowers the price of the subsidized good causing the consumer to increase consumption of the good, but no income effect.

Explanation:

The above is true due to the fact that the consumption of goods increases. This could have been reduced had it been that, there was never any excise subsidy on those goods.

6 0
4 years ago
Which of the following is a good question to ask during an informational interview?
Radda [10]

What was your education/trading path ?

3 0
3 years ago
Read 2 more answers
The appropriate discount rate for the following cash flows is 8 percent compounded quarterly. YearCash Flow 1 $800 2 800 3 0 4 1
zalisa [80]

Answer:

Total PV= $2,298.24

Explanation:

<u>First, we need to determine the effective annual rate:</u>

EAR= [1 + (i/n)]^n - 1

EAR= [1 + (0.08/4)]^4 - 1

EAR= 0.082

<u>Now, we can determine the present value of the cash flow, using the following formula:</u>

PV= ∑[Cf/(1+i)^n]

Cf1= 800 / 1.082= 739.37

Cf2= 800 / 1.082^2= 683.34

Cf3= 0

Cf4= 1,200 / 1.082^4= 875.53

Total PV= $2,298.24

3 0
3 years ago
Other questions:
  • On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for
    9·1 answer
  • If A, B, and C are three activities connected with SS and FF (combination) relationships with 2-day lag on the SS relationships
    12·1 answer
  • When government spending is increased, the amount of the increase in aggregate demand primarily depends on: 
A. The average prop
    6·1 answer
  • _____ is the authority granted by a domestic firm to an overseas firm for the rights to produce and market its product or to use
    8·1 answer
  • The federal government has passed various laws addressing mergers. What did the Clayton ActClayton Act ​do? The Clayton ActClayt
    14·1 answer
  • The aggregate demand curve indicates the relationship between
    6·1 answer
  • 3. The idea that service quality depends heavily on the quality of the buyer-seller interaction
    12·1 answer
  • Which type of credit involves a set limit based on what a consumer pays up front? loans installment credit secured credit cards
    5·1 answer
  • Liquidity is a characteristic of money.
    10·1 answer
  • a certain value has a standardized score = 1.75. how many standard deviations from the mean does this value fall? is this value
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!