Question: 1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. ASSET ANNUAL RETURNS A
1. From the information below, compute the average annual return, the variance, standard deviation, and coefficient of variation for each asset. ASSET ANNUAL RETURNS A B 2 6%, 20%, 2%, 25%, 10% 12%, 15%, 17% 2. You purchased shares of Broussard Company using 50 percent margin; you invested a total of $20,000 (buying 1,000 shares at a price of $20 per share) by using $10,000 of your own funds and borrowing $10,000. Determine your percentage profit or loss under the following situations (ignore borrowing costs, dividends, and taxes). a. the stock price rises to $23 a share b. the stock price rises to $30 a share c. the stock price falls to $16 a share 3. Find the FV of $10,000 invested now after five years if the annual interest rate is 8 percent. a. What would be the FV if the interest rate is a simple interest rate? b. What would be the FV if the interest rate is a compound interest rate? 4. Determine the future values (FVs) if $5,000 is invested in each of the following situations: a. 5 percent for ten years b. 7 percent for seven years c. 9 percent for four years
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
