Question: Table summarizes Portfolio performance for 3 securities (JNJ, WFC, CAT). Calculate Portfolio's Total Geometric Return over this time period. # of shares-> Date 8/1/2021

Table summarizes Portfolio performance for 3 securities (JNJ, WFC, CAT). Calculate Portfolio's Total

# of shares-> Date 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 2/1/2022 3/1/2022 4/1/2022

Table summarizes Portfolio performance for 3 securities (JNJ, WFC, CAT). Calculate Portfolio's Total Geometric Return over this time period. # of shares-> Date 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 2/1/2022 3/1/2022 4/1/2022 5/1/2022 25 JNJ 169.90 159.43 160.79 153.93 169.98 171.19 163.52 177.23 180.46 176.13 30 WFC 44.88 45.77 50.46 47.13 47.51 53.27 52.84 48.20 43.39 42.34 15 CAT 207.70 189.09 200.95 191.50 204.76 199.63 186.68 221.76 209.54 205.21 Cash Portfolio 8,709.34 8,195.19 8,547.68 8,134.43 8,746.04 8,872.27 8,473.56 9,202.99 8,956.31 8,751.56 R(P) -5.90% 4.30% -4.83% 7.52% 1.44% -4.49% 8.61% -2.68% -2.29%

Step by Step Solution

★★★★★

3.41 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the portfolios total geometric return over the given time period we need to use the geo... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Take the Risk Tolerance Quiz on this site: https://www.westportct.gov/home/showpublisheddocument/4986/ What investor type were you: conservative, moderate, or aggressive? Did the answer surprise...

Differentiate between a stock split and a stock dividend. As the financial manager for Tesla Corporation, which would you recommend for Tesla? Provide support for your rationale.

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

The common stock of BJ's Auto Clinic sells for $38.25 a share. The stock is expected to pay $1.90 per share next month when the annual dividend is distributed. BJ's has established a pattern of...

Cash # of shares -> Date 8/1/2021 9/1/2021 10/1/2021 11/1/2021 12/1/2021 1/1/2022 2/1/2022 3/1/2022 4/1/2022 5/1/2022 25 JNJ 169.90 159.43 160.79 153.93 169.98 171.19 163.52 177.23 180.46 176.13 30...

I am trying to check my answers before the assignment is due. thanks 01. Alex Fergusson is 45 years old and has a high risk tolerance. He also has a net worth of $1.2 million. Fergusson has been...

See page 129- 137 on attachment for more details there are five steps to the project. Step 1: Create the loan amortization schedule for the property. Step 2: Create the depreciation schedule. Step 3:...

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

Hello, would you be able to help me analyze the below financial statements and answer requirements 1-6? It is Kohls financial statements for 2014-2015 UNITED STATES SECURITIES AND EXCHANGE COMMISSION...

For the stocks A and B you observe the following variables based on monthly returns: B Elr] Volatility (0) risk free rate (Fr.) 1% Compute the Sharpe Ratio for both stocks and answer which of the two...

Part 4-Short-answer #2 1. What is an allegory? Explain how the Inferno fits this definition. (4 points) 2. Define contrapasso. (2 points) 3. Compare/contrast the sin, contrapasso, and Dante the...

To calculate manufacturing cycle efficiency, divide value - added production time by total cycle time

(a) Draw a mechanism for the following enzymatic reaction (b) Describe an experiment to test the mechanism. (c) Draw a mechanism for the reaction in the absence of cysteine. (d) What would happen if...

(Section3.1) Approximate cos(3.1) using tangent line approximation:First note that cos(3.1)~~cos().Let f(x)=cos(x). Then, f'(x)=Let x0=. Then f'()=L(x), the line tangent to(cos(x))atx0=is:L(x)=Use...

You are an investor and expect the price of a start-ups shares to drop in the near future in response to an expected failure in technology. As a result, you sell 200 shares of this company at $17.50....

Over the past 10 years, Molly ORourke has slowly built a diversified portfolio of common stock. Currently her portfolio includes 20 different common stock issues and has a total market value of...

Ashley Morgan estimates that if he does 15 hours of research using data that will cost $90, there is a good chance that he can improve his expected return on a $20,000, one year investment from 7% to...

Explain the psychological bias that causes peoples decisions to be affected by default rules or the endowment effect.

Clocky is a commitment device to help overcome time inconsistency. Which of the following are the time periods over which someone might have inconsistent preferences and need Clockys help? a. Between...

How much should someone with time-inconsistent preferences be willing to pay for Clocky? a. Nothing, because a regular alarm will work just as well. b. Something, because Clocky increases his utility...