Quiz – Holding-Period Return for a Stock Investment
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Calculate the holding-period return for a stock investment based on the initial and final stock prices.
Calculate the holding-period return for a stock investment based on the initial and final stock prices.
Calculate the proportion of your investment that should be allocated to the risky asset in your complete portfolio, which includes both a risky asset and a Treasury bill, to achieve a specific standard deviation for the overall portfolio.
Determine the allocation of funds between a risky asset and a Treasury bill to achieve a target expected return for a portfolio.
Calculate the expected return on a complete portfolio given the return on a risky portfolio, the risk-free rate, the borrowing rate, and the standard deviation of return on both portfolios.
Determine the nominal (not effective) annual percentage rate of return for a Treasury bill investment, given the purchase price, par value, and maturity period.
Find the arithmetic average of a given set of percentage returns.
Determine the dollar values of your investments in Treasury bills, Security X, and Security Y within a complete portfolio aiming for a specific expected return rate. Consider the given optimal weights of X and Y in the risky portfolio and the fixed return rate of Treasury bills.
Determine the annualized geometric average return for a risky portfolio by considering its performance over several recent years, which includes varying rates of return. Use these historical performance rates to calculate the overall geometric average return.
Find the arithmetic average of a set of three percentage values.
Find the geometric average of a set of three percentage changes.