Your grandfather invested $1,000 in a stock 50 years ago. Currently the value of his account is

Question:

Your grandfather invested $1,000 in a stock 50 years ago. Currently the value of his account is $324,000. What is his geometric return over this period?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

See More Books

Question Posted: Nov 15, 2018 04:20 AM

See More Questions

Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1900. It is now 2016. a. If your great grandfather invested $1,000 in 1900, how...
Suppose that the value of an investment in the stock market has increased at an average compound rate of about 5% since 1900. It is now 2019. a. If your great-grandfather invested $1,000 in 1900, how...
Your grandfather would like to share some of his fortune with you. He offers to give you money under one of the following scenarios (you get to choose): 1. $8,000 a year at the end of each of the...
Zainab company has sold goods on credit RO 55,000 on 31st December 2020 and received RO 15,000 towards credit sales. The company had debit balance of RO 5500 and the balance in accounts receivable...
Discuss whether or not a helium-filled balloon could "rise" in the atmosphere of a rotating space habitat.
FG specializes in the manufacture of tablets, laptops and desktop PCs. FG currently operates a standard absorption costing system. Budgeted information for next year is given below: Fixed production...
Which one of the following costs is not included in inventory for manufacturing firms? a. Raw materials used in production b. Raw materials unused and stored in the warehouse c. Salary paid to the...
What financial statement misrepresentations may result from an inconsistently applied credit policy? Be specific.
Switching from a business-to-consumer model to a business-to-business model would have a lot of moving parts. Our simulation is selling fully-built road and mountain bikes for casual and serious bike...
Using data in Exhibit 1, calculate Coxs break-even point in sales dollars (per hen). Taking into account his cumulative revenue for a hen, during which week (approximately) will the break-even point...
Refer to Table 1.1 for large-company stock and T-bill returns for the period 19731977: a. Calculate the observed risk premium in each year for the common stocks. b. Calculate the average returns and...
Look back to Figure 1.1 and find the value of $1 invested in each asset class over this 90-year period. Calculate the geometric return for small-company stocks, large-company stocks, long-term...
Can a matrix whose entry is 0 on the diagonal be solved? Explain why or why not. What would you do to remedy the situation?
A vehicle is towing a tank filled with water and the drag force is measured. The length scale is 1/5 of what of a full-scale prototype would be. The drag force is a function of velocity known as V,...
Assume that you won the Powerball jackpot. You were given the choice between collecting $758.7 million over 30 years at the beginning of each year, or $480.5 million right away. The current maximum...
2. Find the surface area of this house including the roofs and all walls (but not including the floor). Show all of your work. Hint: Try sketching out each of the shapes that together make up the...
Credit policies are established to approve customers to purchase on account and terms are established to let customers know when a payment is due and whether there's a discount if they pay early....
Use the following fusion reaction to determine the amount of mass that is converted to energy. Show all work. 2/1 H + 3/1 H 4/2 He + 1/0 n + 17.6 MeV E = a c Am G 6=176Me -23 lamu = 1.67-10kg (=...
Air enters a 25-cm-diameter 12-m-long underwater duct at 50C and 1 atm at a mean velocity of 7 m/s, and is cooled by the water outside. If the average heat transfer coefficient is 85 W/m 2 K and the...
Use the formula to determine the value of the indicated variable for the values given. Use a calculator when one is needed. When necessary, use the key on your calculator and round answers to the...
In the previous problem, suppose the yield on the bond suddenly increases by 2 percent. Use duration to estimate the new price of the bond. Compare your answer to the new bond price calculated from...
Assume the bond in the previous problem has a yield to maturity of 7 percent. What is the Macaulay duration now? What does this tell you about the relationship between duration and yield to maturity?
Suppose the yield to maturity on the bond in the previous problem increases by .25 percent. What is the new price of the bond using duration? What is the new price of the bond using the bond pricing...
A firm has 36.30 million shares of common stock outstanding at a price of $32.81 per share. The firm also has 492000.00 bonds outstanding with a current price of $1,089.00. The outstanding bonds have...
Commwest Bank owns $300 million of variable-rate notes yielding BBR plus 4 per cent. These loans are financed by $300 million of fixed-rate bonds costing 5 per cent.Northside Building Societyhas $300...
Mr. Smith enters into the long position in 5 S&P 500 futures contracts. His brokerage account requires an initial margin balance equal to 15% of the notional amount and a maintenance margin equal to...

Your grandfather invested $1,000 in a stock 50 years ago. Currently the value of his account is

Question:

Step by Step Answer:

324000 ...View the full answer

Fundamentals of Investments, Valuation and Management

Students also viewed these Business questions