Using the data from Q1), solve for the Geometric return using regression analysis assuming an endowment...
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Using the data from Q1), solve for the Geometric return using regression analysis assuming an endowment started with a $100 investment at the beginning of 1900. Based on your regression analysis what would you expect the endowment's investment to be worth at the end of 2025, assuming there have been no withdrawals? Data Table from Q1 101 Years of Stock Performance - Rounded off to the nearest 5% Interpreted from the research of Dimson, Marsch and Staunton Market Market Market Market Market Year Returns Year Returns Year Returns Year Returns Year Returns 1900 25% 1920 -15% 1940 -5% 1960 -5% 1980 15% 1901 15% 1921 25% 1941 -15% 1961 25% 1981 -15% 1902 5% 1922 35% 1942 5% 1962 -15% 1982 15% 1903 -15% 1923 5% 1943 25% 1963 15% 1983 15% 1904 25% 1924 25% 1944 15% 1964 15% 1984 -5% 1905 15% 1925 25% 1945 35% 1965 15% 1985 25% 1906 -5% 1926 15% 1946 -25% 1966 -15% 1986 15% 1907 -35% 1927 35% 1947 -5% 1967 25% 1987 -5% 1908 45% 1928 45% 1948 -5% 1968 5% 1988 15% 1909 15% 1929 -15% 1949 25% 1969 -15% 1989 25% 1910 -5% 1930 -25% 1950 25% 1970 -5% 1990 -15% 1911 5% 1931 -35% 1951 15% 15% 1971 15% 1991 35% 5% 1912 5% 1932 5% 1952 1972 15% 1992 1913 -5% 1933 55% 1953 -5% 1973 -25% 1993 5% 1914 -5% 1934 5% 35% 1954 55% 1974 -35% 1994 -5% 1915 35% 1935 1955 25% 1975 25% 1995 35% 1916 -5% 1936 35% 1956 5% 1976 25% 1996 15% 1917 -35% 1937 -35% 1957 -15% 1977 -5% 1997 25% 1918 -5% 1938 35% 1958 45% 1978 5% 1998 25% 1919 5% 1939 5% 1959 15% 1979 15% 1999 25% 2000 -15% Using the data from Q1), solve for the Geometric return using regression analysis assuming an endowment started with a $100 investment at the beginning of 1900. Based on your regression analysis what would you expect the endowment's investment to be worth at the end of 2025, assuming there have been no withdrawals? Data Table from Q1 101 Years of Stock Performance - Rounded off to the nearest 5% Interpreted from the research of Dimson, Marsch and Staunton Market Market Market Market Market Year Returns Year Returns Year Returns Year Returns Year Returns 1900 25% 1920 -15% 1940 -5% 1960 -5% 1980 15% 1901 15% 1921 25% 1941 -15% 1961 25% 1981 -15% 1902 5% 1922 35% 1942 5% 1962 -15% 1982 15% 1903 -15% 1923 5% 1943 25% 1963 15% 1983 15% 1904 25% 1924 25% 1944 15% 1964 15% 1984 -5% 1905 15% 1925 25% 1945 35% 1965 15% 1985 25% 1906 -5% 1926 15% 1946 -25% 1966 -15% 1986 15% 1907 -35% 1927 35% 1947 -5% 1967 25% 1987 -5% 1908 45% 1928 45% 1948 -5% 1968 5% 1988 15% 1909 15% 1929 -15% 1949 25% 1969 -15% 1989 25% 1910 -5% 1930 -25% 1950 25% 1970 -5% 1990 -15% 1911 5% 1931 -35% 1951 15% 15% 1971 15% 1991 35% 5% 1912 5% 1932 5% 1952 1972 15% 1992 1913 -5% 1933 55% 1953 -5% 1973 -25% 1993 5% 1914 -5% 1934 5% 35% 1954 55% 1974 -35% 1994 -5% 1915 35% 1935 1955 25% 1975 25% 1995 35% 1916 -5% 1936 35% 1956 5% 1976 25% 1996 15% 1917 -35% 1937 -35% 1957 -15% 1977 -5% 1997 25% 1918 -5% 1938 35% 1958 45% 1978 5% 1998 25% 1919 5% 1939 5% 1959 15% 1979 15% 1999 25% 2000 -15%
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