AGB310 - HW 1

# AGB310 - HW 1 - the geometric mean d Using the answer from...

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Agribusiness Credit and Finance Fall 2009 Homework A 1. The Dow Jones Industrial Average (DJIA) closed at 7908.25 at the end of 1997. The table at left shows the year-end annual changes on the DJIA from 1997 to 2008. Please do the following: a. Calculate the values for the years subsequent to 1997. (2008 is given to help you check your calculations). Use the blank spaces for answers. b. Calculate the entire percentage return from 1997 through 2008. c. Calculate the average annual percentage return using
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Unformatted text preview: the geometric mean. d. Using the answer from “c”, if you invested \$3.5 million in the DJIA at the end of 2000, how much would you have at the end of 2006? e. What is the value of the 2006 from amount from “d” in 2000 dollars, using an inflation rate of 2.5%? 1997 7908.25 7908.25 1998 18.3% 1999 16.9% 2000 − 0.5% 2001 − 8.9% 2002 − 15.9% 2003 25.3% 2004 3.1% 2005 − 0.6% 2006 16.3% 2007 6.4% 2008 − 33.8% 8769.86...
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