Homework 2 - 2 6% $1,017.60 3 4% $1,058.30 4 18% $1,248.80...

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BA 4346 Homework set: due Monday, June 15 Period Return% 1 16% 116% $1,160.00 2 18% 118% $1,368.80 3 4% 104% $1,423.55 4 6% 106% $1,508.97 5 -4% 96% $1,448.61 Calculate the following: 8% 7.6936475993806500% (x-xbar) (x-xbar)^2 Sum /N= Variance 0.01 Period Return% -1000 1 16% $1,160.00 2 18% $1,368.80 3 4% $1,423.55 4 6% $1,508.97 5 -4% $1,448.61 Year 5 End $1,448.61 7.69% Period Return% -1000 1000 Outflows 1 16% $1,160.00 $2,160.00 -1000 2 18% $2,548.80 $3,548.80 -1000 3 4% $3,690.75 $4,690.75 -1000 4 6% $4,972.20 $5,972.20 -1000 1. The following returns were generate by the Skeezix Fund: a. Arithmetic mean return b. Geometric mean return c. Variance (use n) Calculate longhand. Check with calculator “stat” function. d. Standard deviation (use n). e. Coefficient of variation a. How much did Bob have in the account at the end of year 5? Ignore taxes. b. What was Bob’s rate of return. 3. Fran invested $1,000 in Skeezix at the beginning of each year (1-5).
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5 -4% $5,733.31 $6,733.31 -1000 Year 5 End $5,733.31 $5,733.31 $5,733.31 4.60% 2a Period Return% -1000 1 -4% $960.00
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Unformatted text preview: 2 6% $1,017.60 3 4% $1,058.30 4 18% $1,248.80 5 16% $1,448.61 Year 5 End $1,448.61 2b 7.694% 3a Period Return%-1000 1000 Outflows 1-4% $960.00 $1,960.00 -1000 2 6% $2,077.60 $3,077.60 -1000 3 4% $3,200.70 $4,200.70 -1000 4 18% $4,956.83 $5,956.83 -1000 5 16% $6,909.92 $7,909.92 -1000 Year 5 End $6,909.92 $6,909.92 3b 10.9853% # Return Probability-15%-1.50% 0.1 0% 0.00% 0.2 15% 6.00% 0.4 30% 6.00% 0.2 45% 4.50% 0.1 E (R) 15.00% Calculate the mean and standard deviation for Zelmos projected returns. Mean 15.00% Standard Dev Probability R-E(R) (R-E(R))^2 Prob*(R-E(R))^2 0.1-30.00% 9.00% 0.01 0.2-15.00% 2.25% 0.4 0.00% 0.00% 0.2 15.00% 2.25% 0.1 30.00% 9.00% 0.01 a. How much did Fran have in her account at the end of year 5? Ignore taxes. b. What was Frans rate of return? 4. Reverse the chronological order of the returns for Skeezix. Now recalculate 2a, 2b, 3a, and 3b. Variance 2.70% Standard Dev 16.432%...
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Homework 2 - 2 6% $1,017.60 3 4% $1,058.30 4 18% $1,248.80...

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