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Example Fill in the Blanks for Exam 1

# Example Fill in the Blanks for Exam 1 - Example Fill in the...

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Example Fill in the Blanks—Exam 1 ____________ 1. Approximate geometric mean for the S&P 500 stocks for very long periods of time (round number). _____________2. Range of returns for the geometric mean for bonds, both Treasury and corporate, for long periods of time. Choose from 4-5%, 5-6.5%, 6-7%, or 3-4.5%. _____________3. Calculate the Total Return for a stock bought at \$46, held for one year during which a dividend of \$3 is paid, and sold for \$51. _____________4. The 4 types (issuers) of bonds are: _____________5. An investor buys 100 shares of Ajax at \$55 per share on margin. The stock goes to \$67 per share and the investor sells. Ignoring all costs, the percentage return for the investor is _____________6. You own a mutual fund with the following annual returns for 4 consecutive years: -9%, 11.5%, 12.3%, -3.4%. Assume you invested \$1000 at the beginning of this 4 year period. How much money would you have at the end of the four year period? _____________7. Given a geometric mean for stocks of 10.14% for an 80 year period, the geometric mean for the yield component was 4.01%. What is the cumulative wealth for the other component of the cumulative wealth for stocks for this period?

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