Return_risk_problems

# Return_risk_problems - a How much did Fran have in her...

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BA 4346 Homework set: due Monday, June 15 1. The following returns were generate by the Skeezix Fund: Period Return% 1. 16 2. 18 3. 4 4. 6 5. -4 Calculate the following: 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 2. Bob invested \$1,000 in Skeezix at the beginning of year 1 and made no further contributions or withdrawals. 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 at the beginning of each year (1-5).
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Unformatted text preview: a. How much did Fran have in her account at the end of year 5? Ignore taxes. b. What was Fran’s rate of return? 2. Zelmo has evaluated economic and industry conditions in addition to the financial and business profile of his own company. He has determined that his widget manufacturing company has the following potential returns in the coming year: Probability Return .10-15% .20 0% .40 15% .20 30% .10 45% Calculate the mean and standard deviation for Zelmo’s projected returns....
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