Quiz – Geometric Average of a Set of Three Percentage Returns
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Find the geometric average of a set of three percentage returns.
Calculator Preview
Your numbers will vary.
Find the geometric average of a set of three percentage returns.
Your numbers will vary.
Determine the geometric average return of a set of quarterly returns.
Your numbers will vary.
Calculate the HPR for an investment that grows by a certain percentage and earns a dividend.
Your numbers will vary.
Calculate the holding-period return for a Treasury bill investment by comparing the purchase price with the par value and maturity date.
Your numbers will vary.
Treasury bills are paying an 8% rate of return. A risk-averse investor with a risk aversion of A = 2 should invest entirely in a risky portfolio with a standard deviation of 21% only if the risky portfolio’s expected return is at least __.
Your numbers will vary.
Determine the percentage allocation of your complete portfolio to the risky asset, in order to achieve a desired standard deviation for the overall portfolio.
Your numbers will vary.
Calculate the probability of obtaining a return within a specified range for security with normally distributed returns, given the expected return and standard deviation.
Your numbers will vary.
Calculate the real holding-period return for a stock investment given the beginning and end stock prices, dividend payment, and inflation rate.
Your numbers will vary.
Determine the real rate of return on investment by considering both the nominal rate of return and the rate of inflation over a specific holding period.
Your numbers will vary.
Determine the Sharpe ratio for a portfolio that generated a certain return last year, with a specific standard deviation, and compare it to the return on T-bills. Make sure to consider the excess return over the T-bill rate in your calculation.
Your numbers will vary.