Quiz – Calculate the Geometric Average Return from Quarterly Returns
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Determine the geometric average return of a set of quarterly returns.
Determine the geometric average return of a set of quarterly returns.
Calculate the HPR for an investment that grows by a certain percentage and earns a dividend.
Determine the reward-to-volatility ratio for the Manhawkin Fund, given its expected return, standard deviation, and risk-free rate.
Determine the Annual Percentage Rate (APR) for a home mortgage, given the monthly interest rate.
Determine the cash dividend for a stock, given its holding-period return, its starting price, and its ending price.
Determine the Effective Annual Rate (EAR) for a car loan that incurs monthly interest charges at a specified rate.
Determine the holding-period return for a share of stock you purchased and later sold after receiving a dividend. Calculate the return based on the initial purchase price, the dividend received, and the selling price of the stock.
Determine the Sharpe ratio for a portfolio by considering its return last year and its standard deviation, relative to the return on T-bills. Use this information to calculate the measure of risk-adjusted performance.
Evaluate the risk-return characteristics of two assets A and B, given their expected returns and standard deviations, and determine which asset would be preferable for an investor with a risk aversion of A = 3.
Calculate the real rate of return on investment, taking into account the promised nominal return and expected inflation rate.