Question

The value of $1 invested in the large-company stock in the year of 1925 grew to...

The value of $1 invested in the large-company stock in the year of 1925 grew to $3,320 in the year of 2017 over 92 years. Compute the time weighted compounding rate of return.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

time weighted compounding rate of return

=((3320/1)^(1/92))-1

=9.21%

the above is answer..

Add a comment
Know the answer?
Add Answer to:
The value of $1 invested in the large-company stock in the year of 1925 grew to...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After...

    Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After 30 yr, the value is $157,317.42. Part: 0/2 Part 1 of 2 (a) Use the model A=Pe to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps. The average rate is approximately %.

  • You invested $10,000 one year ago in a stock, and the value of the stock is...

    You invested $10,000 one year ago in a stock, and the value of the stock is now $11,000. If the inflation rate during this time was 2.7%, what was your real rate of return? (Answers based off of Fisher Equation). Multiple Choice O 12.7% O 7.1% O -7.3% O 10%

  • Using Excel to calculate the following: 1. The future value of $3 invested every day, 360...

    Using Excel to calculate the following: 1. The future value of $3 invested every day, 360 days per year, for 50 years at 8% interest. Hint: Interest is compounding daily. 2. The future value of $1,080 ($3 x 360) invested annually for 50 years at 8% interest. 3. The payment for a mortgage with a principal amount of $150,000, an interest rate of 5%, fully amortized over 30 years. 4. The price today of 15 year bond that has a...

  • You own a portfolio that has 60% invested in Stock X and 40% invested in Stock...

    You own a portfolio that has 60% invested in Stock X and 40% invested in Stock Y. Assume the expected returns on these stocks are 13% and 18%, respectively. What is the expected return on the portfolio? A portfolio has a beta of 0.6. The risk-free rate is 2% and the expected return on the market is 12%. What is the expected return on the portfolio? A bond has a $1,000 par value, 10 years to maturity, a 5% coupon...

  • you recently invested $18,000 of your savings in a security issued by a large company. the...

    you recently invested $18,000 of your savings in a security issued by a large company. the security agreement pays you 6 percent per year and has a maturity three years from the day you purchased it. what is the total cash flow you expect to receive from this investment over the next three years 숄 https://n eek One: Chapters 1 & 26 Help Save & Exit Submit You recently invested $18.000 of your savings in a security issued by a...

  • Last year you invested in a stock with a beta equal to 0.76. The risk-free rate...

    Last year you invested in a stock with a beta equal to 0.76. The risk-free rate was 0.016 and the expected return of the market was 0.19. After holding the stock for the year you find that the market did return what was expected. However, the stock you invested in returned 0.16. By how much did the stock over-perform (under-perform) for the year? Answer as a percentage to two decimals

  • Your grandfather invested $1,000 in a stock 37 years ago. Currently the value of his account...

    Your grandfather invested $1,000 in a stock 37 years ago. Currently the value of his account is $320,000. What is his geometric return over this period?

  • Arthur buys $1,500 worth of stock. Six months later, the value of the stock has risen...

    Arthur buys $1,500 worth of stock. Six months later, the value of the stock has risen to $1,700 and Arthur buys another $1,000 worth of stock. After another eight months, Arthur's holdings are worth $2,300 and he sells off $800 of them. Ten months later, Arthur finds that his stock has a value of $1,600. (a) Compute the annual time-weighted yield rate of the stock over the two-year period. (Round your answer to two decimal places.) (b) Compute the annual...

  • Question 1 (1 point) Calculate the future value (FV) of: $1,250 today invested in a financial...

    Question 1 (1 point) Calculate the future value (FV) of: $1,250 today invested in a financial tool with a rate of return of 8% that compounds once a year for 5 years. $1,858.89 $1,353.25 $1,836.66 $1,350.00 Question 2 (1 point) Calculate the future value (FV) of: $500 today invested in a financial tool with a rate of return of 12% that compounds 12 times a year for 8 years. 20 PWPXO

  • Tom O'Brien has a 2-stock portfolio with a total value of $100,000 $47.500 is invested in Stock A with a beta...

    Tom O'Brien has a 2-stock portfolio with a total value of $100,000 $47.500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his portfolio's beta? Do not round your intermediate calculations. Round your final answer to 2 decimal places. a. 1.06 O b. 1.05 . c. 1.09 • O d. 1.10 OOO oooo.. o. Click here to read the eBook: The Relationship Between Risk...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT