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# Practice Questions 3 - 2008f-akadms3531b-03 -...

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Atkinson Home 2008F-AKADMS3531B-03 Welcome Kishore Nagarajan Sign Out Welcome Course Outline Support York Libraries Course Schedule Announcements Presentation Slides Assignments Other Course Materials Home > Other Course Materials Downloa d Print Practice Questions 3 Created By: Irvin Pestano 19/09/2008 - 05:11 PM Updated By: Irvin Pestano 19/09/2008 - 05:13 PM Practice Questions 3 Textbook Page Proble m 200 4 200 6 201 12 201 16 239 2

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Student FAQs 239 10 239 12 240 16 240 18 241 24 Solutions 4. Beginning index value = (95 + 54)/2 = 74.50 Ending index value = (102 + 63)/2 = 82.50 Return = (82.50 – 74.50)/74.50 = 10.74% 6. Beginning of year: \$3,417,500 / \$3,417,500 × 100 = 100.00 End of year: \$3,832,500 / \$3,417,500 × 100 = 112.14 Note you would receive the same answer with either initial valuation method: Beginning of year: \$6,835,000 / \$6,835,000 × 100 = 100.00 End of year: \$7,665,000 / \$6,835,000 × 100 = 112.14 12. a. 1/1/01: Index value = (65 + 30 + 50)/3 = 48.3333 b. 1/1/02: Index value = (70 + 48 + 61)/3 = 59.6667 2002 return = (59.6667 – 48.3333)/48.3333 = 23.45%
1/1/03: Index value = (68 + 41 + 53)/3 = 54.00 2003 return = (54 – 59.6667)/59.6667 = –9.50% 16. 2001: Douglas McDonnell return = (70 – 65)/65 = 7.69% Dynamics General return = (48 – 30)/30 = 60.00% International Rockwell return = (61 – 50)/50 = 22.00% 2001: Index return = (.0769 + .60 + .22)/3 = 29.90% 1/1/02: Index value = 100(1.2990) = 129.90 2002: Douglas McDonnell return = (68 – 70)/70 = – 2.86% Dynamics General return = (41 – 48)/48 = – 14.58% International Rockwell return = (53 – 61)/61 = –

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Practice Questions 3 - 2008f-akadms3531b-03 -...

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