Homework Help Question & Answers

Between 1st January 2010 and 31st December 2014 you invested in a portfolio whose Arithmetic (AM)...

Between 1st January 2010 and 31st December 2014 you invested in a portfolio whose Arithmetic (AM) and Geometric Means (GM) was 8 and 6 percent respectively. If the beginning market value of the portfolio was $100 000 on 1st January 2010 calculate the market value at the portfolio maturity on 31st December 2014.

0 0
Next > < Previous
ReportAnswer #1

Beginning Value = $ 100000, Geometric Mean(Return) = 6 %, Investment Tenure = 31st Dec 2014 - 1st Jan 2010 = 5 years

Market Value of Portfolio = 100000 x [(1.06)^(5)] = $ 133822.558 ~ $ 133822.56

Know the answer?
Add Answer of:
Between 1st January 2010 and 31st December 2014 you invested in a portfolio whose Arithmetic (AM)...
Your Answer: Your Name: What's your source?
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
  • A portfolio of nondividend-paying stocks earned a geometric mean return of 5.0% between January 1, 2001 and December 31, 2007

    A portfolio of nondividend-paying stocks earned a geometric mean return of 5.0% between January 1, 2001 and December 31, 2007. The arithmetric mean return for the same period was 6.0%. If the market value of the portfolio at the beginning of 2001 was $ 100,000, what was the market value of the portfolio at the end of 2007?

  • i need a Diresct material and Direct Labor budget (seperate budgets) thank you so much!!!! The 1. December 31, 20Xx, balance sheet for the company follows. DYB-ASPORA, Inoorporated Balance She...

    i need a Diresct material and Direct Labor budget (seperate budgets) thank you so much!!!! The 1. December 31, 20Xx, balance sheet for the company follows. DYB-ASPORA, Inoorporated Balance Sheet December 31, 20xx AssetS Lisbilities and Stockholder quity Ca.sh Accounts Receivable Raw Materials Inventory Finished Goods Inventory Prepaid Insuranoe Building Aco Depreciation Total Asseta $5,080 26,500 2000 3.680 1,300 Notes Pa yable Accounts Payable Dividends Payable Total Liabilities Common Stock Paid-in Capital Retained Earnings $25,0o0 2,148 10000 37,148 100,000 50,000...

  • Sent Need the answers for that whole question paper True or false questions (25) has any...

    Sent Need the answers for that whole question paper True or false questions (25) has any effect SECTION TRUE OR FALSE QUESTION (40 Marks) The following questions indicate if it's True or False. Each question carries 2 Marks 1. Accounting Principle is general law or rule followed in the preparation of financial statements 2. Usefulness, objectivity and feasibility are the three basic norms generally found in accounting principles 3. The Cash book record only the cash payments 4. If a...

  • Can someone help me with my finance homework please???

    Ques. 4) In 2010, Jack's Art Gallery sold 200 original works of art for $1,240,520. The gallery acquired the works sold for $530,000. Each painting was framed usingpredesigned framing kits in the gallery's own workshop. The firm bought 100 kits in January for $50,000, 100 kits in March for $60,000.,100 kits in May for $40,000 and100 kits in August for $30,000. Other costs of operation, including salaries, supplies, rent, etc., totaled $200,000. The company depreciated its assets by $120,000and paid...

  • Question 5

    Ques. 1) Which of the following is not an advantage of the corporate form of business organization?a. Sell debt or equity in public capital marketsb. Owners have limited liabilityc. Owners are subject to double taxationd. May continue in business in perpetuityQues. 2) Working capital management involves decisions related to the following:a. Purchase of production machinesb. Extending credit to customersc. Signing a 3 year lease for an office buildingd. Negotiating with city officials a 2-year tax abatement plan for a new...

  • finance 640

    Ques. 1) Which of the following is not an advantage of the corporate form of business organization?a. Sell debt or equity in public capital marketsb. Owners have limited liabilityc. Owners are subject to double taxationd. May continue in business in perpetuityQues. 2) Working capital management involves decisions related to the following:a. Purchase of production machinesb. Extending credit to customersc. Signing a 3 year lease for an office buildingd. Negotiating with city officials a 2-year tax abatement plan for a new...

  • New England Healthcare (NEH) began its two teaching and research hospitals in 1994

    New England Healthcare (NEH) began its two teaching and research hospitals in 1994. Following the two hospitals merger, “several suburban acute-care hospitals had also elected to join the NEH system, as had a large number of primary-care medical practices in the region” (Light, 2005, p.296). New England Healthcare was considered to have high quality health care services and education (teaching) in the course of break-through medical research. With variable operating margins, New England Healthcare struggled to receive reasonable reimbursements from...

  • New England Healthcare (NEH) began its two teaching and research hospitals in 1994

    New England Healthcare (NEH) began its two teaching and research hospitals in 1994. Following the two hospitals merger, “several suburban acute-care hospitals had also elected to join the NEH system, as had a large number of primary-care medical practices in the region” (Light, 2005, p.296). New England Healthcare was considered to have high quality health care services and education (teaching) in the course of break-through medical research. With variable operating margins, New England Healthcare struggled to receive reasonable reimbursements from...

  • please I am having a lot of problems with the questions above .I am getting ready for the final this week.Can you please answer all of them . Tab 07) How many of the following events would requ...

    please I am having a lot of problems with the questions above .I am getting ready for the final this week.Can you please answer all of them . Tab 07) How many of the following events would require an expense to be recorded? Ordering office supplies Hiring a receptionist Paying employces' salaries for the current month Receiving but not paying a current utility bill Paying for insurance in advance A) One D)Iwo. C) Three. B) Four 08) The balance sheet...

  • Volkswagen's Hedging Strategy 1. Why did Volkswagen suffer a 95% drop in its 4th quarter, 2003 pr...

    Volkswagen's Hedging Strategy 1. Why did Volkswagen suffer a 95% drop in its 4th quarter, 2003 profits? 2. Do you think the Volkswagen’s decision to hedge only 30% of its anticipated U.S. sales was a good? Why or why not? 3. Do you think the Volkswagen’s decision to revert back to hedging 70% of its foreign currency exposure was a good decision? Why or why not? Embraer and the Wild Ride of the Brazilian Real 4. Is a decline in...

Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.