Quiz – Total Compound Return Over a 3-Year Investment
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Calculate the total compound return over a three-year investment with varying annual returns.
Calculate the total compound return over a three-year investment with varying annual returns.
Determine the total compound return of an investment that earns a high percentage in the first year, higher in the second year, and then incurs a significant loss in the third year.
Given the amount saved in multiple years, they ask you to calculate the present value of the cash flows.
Given the payment made annually, the period, and the lease liability, they ask you to determine the interest rate.
Determine how you would search the second row in the (PV of $1), to find the annual interest rate.
Calculate the Value at Risk (VaR) of a portfolio with normally distributed returns, using the given expected return and standard deviation, and determine the potential loss at a specific confidence level.
Calculate the dollar values of positions in two risky securities, X and Y, given the expected rate of return and optimal weights, when investing a specified percentage of a complete portfolio in the risky portfolio and the remaining percentage in Treasury bills.
What is the company’s asset turnover?
How much will the investment be worth at retirement if you proceed with scenario 1?
Compute the implied return on a common stock issue given a dividend, the issue price of each share, and an annual dividend growth rate.