Question: MC Questions 16-23... Geometric Returns, Unit Values, Arithmetic Returns, and Standard Deviations The following questions refer to the follow returns for stocks for the first


MC Questions 16-23... Geometric Returns, Unit Values, Arithmetic Returns, and Standard Deviations The following questions refer to the follow returns for stocks for the first ten years of the century. These are total rate of returns; that is, both income and price. For example, the total rate of return for 2001 was a negative 11.85%. If you invested $1.00 at the beginning of the time frame [1/1/2001), how much would your dollar be worth five years (5) later, that is, on 12/31/2005? Hint: Calculate your unit values. Year Retum 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -11.85% -23.97% 28.36% 10.74% 8.83% 15.6196 8.48% -36.55% 23.94% 21.00% Select one: O a $1.08 to $1.10 O b. $1.02 to $1.04 O c. $1.00 to $1.02 O d. $1.04 to $1.06 d O e. More than $1.10 $ O t. $1.06 to $1.08 O g. Less than $1.00 How much would your initial dollar investment be worth at the end of year 10; that is, on 12/31/2010? Select one: O a. More than $1.10 O b. $1.08 to $1.10 O c. $1.00 to $1.02 O d. $1.06 to $1.08 O . $ O . $1.04 to $1.06 Of. Less than $1.00 O g. $1.02 to $1.04 $ What was your Geometric Average Return (Fidelity calls them 'Average Annual Returns") for the five (5) years ending 12/31/2005 (Hint: Use the unit value that you calculated earlier.). Select one: O a. 4.00% to 5.00% O b. 5.00% to 6.00% . % O c.0% to 1.00% O d. 3.00% to 4.00% O e. More than 6.00% O f. 2.00% to 3.00% f% O g. Negative Oh. 1.00% to 2.00% What was your Geometric Average Return (Fidelity calls them 'Average Annual Returns") for the ten [10] years onding 12/31/2010 [Hint: Use the unit value that you calculated earlier.). Select one: O a. 2.00% to 3.00% O b. 5.00% to 6.00% b O c. Negative O O d. 3.00% to 4.00% d O e. 1.00% to 2.0096 e% O t. More than 6.00% O g.0% to 1.00% Oh. 4.00% to 5.00% MC Questions 16-23... Geometric Returns, Unit Values, Arithmetic Returns, and Standard Deviations The following questions refer to the follow returns for stocks for the first ten years of the century. These are total rate of returns; that is, both income and price. For example, the total rate of return for 2001 was a negative 11.85%. If you invested $1.00 at the beginning of the time frame [1/1/2001), how much would your dollar be worth five years (5) later, that is, on 12/31/2005? Hint: Calculate your unit values. Year Retum 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -11.85% -23.97% 28.36% 10.74% 8.83% 15.6196 8.48% -36.55% 23.94% 21.00% Select one: O a $1.08 to $1.10 O b. $1.02 to $1.04 O c. $1.00 to $1.02 O d. $1.04 to $1.06 d O e. More than $1.10 $ O t. $1.06 to $1.08 O g. Less than $1.00 How much would your initial dollar investment be worth at the end of year 10; that is, on 12/31/2010? Select one: O a. More than $1.10 O b. $1.08 to $1.10 O c. $1.00 to $1.02 O d. $1.06 to $1.08 O . $ O . $1.04 to $1.06 Of. Less than $1.00 O g. $1.02 to $1.04 $ What was your Geometric Average Return (Fidelity calls them 'Average Annual Returns") for the five (5) years ending 12/31/2005 (Hint: Use the unit value that you calculated earlier.). Select one: O a. 4.00% to 5.00% O b. 5.00% to 6.00% . % O c.0% to 1.00% O d. 3.00% to 4.00% O e. More than 6.00% O f. 2.00% to 3.00% f% O g. Negative Oh. 1.00% to 2.00% What was your Geometric Average Return (Fidelity calls them 'Average Annual Returns") for the ten [10] years onding 12/31/2010 [Hint: Use the unit value that you calculated earlier.). Select one: O a. 2.00% to 3.00% O b. 5.00% to 6.00% b O c. Negative O O d. 3.00% to 4.00% d O e. 1.00% to 2.0096 e% O t. More than 6.00% O g.0% to 1.00% Oh. 4.00% to 5.00%
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