Asked by Margaret Galeener on Jun 03, 2024
Verified
You have the following rates of return for a risky portfolio for several recent years:
2013 35.23%
2014 18.67%
2015 −9.87%
2016 23.45%
If you invested $1,000 at the beginning of 2013, your investment at the end of 2016 would be worth ________.
A) $2,176.60
B) $1,785.56
C) $1,645.53
D) $1,247.87
Annualized (Geometric)
Refers to a method of converting short-term rates of return into longer-term rates that account for the effect of compounding over a full year.
Rates of Return
The net gain or loss on an investment over a specified time period, expressed as a percentage of the investment's initial cost.
- Perceive the influence of market variability and standard deviation on investment profits.
Verified Answer
AK
Anastacia KuzminaJun 05, 2024
Final Answer :
B
Explanation :
$1,000(1.3523)(1.1867)(1 + -.0987)(1.2345) = $1,785.56
Learning Objectives
- Perceive the influence of market variability and standard deviation on investment profits.
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