Melvin in contemplating investing in Gajah Technologies which report shows has a 10 year annual return of
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Question:
Melvin in contemplating investing in Gajah Technologies which report shows has a 10 year annual return of 7.65% and a standard deviation of 13.24%. Over the same period, the technologies Index closing figures are as follows:
Year As at 31 December
2010 1,583.26
2011 1,495.55
2012 1,732.29
2013 2,194.47
2014 2,302.87
2015 2,282.84
2016 2,454.28
2017 3,004.04
2018 2,742.39
2019 3,501.21
2020 4,057.90
1. What is the potential range of returns for the technologies index?
2. Assuming the risk-free rate of return is 2.5%, what is the expected returns for Gajah Technologies?
Related Book For
Macroeconomics Principles Applications And Tools
ISBN: 9780134089034
7th Edition
Authors: Arthur O Sullivan, Steven M. Sheffrin, Stephen J. Perez
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