Purchase Solution

Average return

Not what you're looking for?

Ask Custom Question

4) A mutual fund earned 10% over the last year, 12% over the last two years, and 15% per year over the last 3 years. (all returns are geometric averages).
If you invested $10,000 per year in the fund, in each of the last three years, how much would your investment be worth today. What is your average return IRR?

Purchase this Solution
Solution Summary

The expert calculates the return on investment in a mutual fund.

Solution Preview

Please see attached file.

4) A mutual fund earned 10% over the last year, 12% over the last two years, and 15% per year over the last 3 years.  (all returns are geometric averages).
If you invested $10,000 per year in the fund, in each of the last three years, how much would your investment be worth ...

Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance

These questions will test you on your knowledge of finance.

Motivation

This tests some key elements of major motivation theories.

Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Employee Orientation

Test your knowledge of employee orientation with this fun and informative quiz. This quiz is meant for beginner and advanced students as well as professionals already working in the HR field.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

View More Free Quizzes
Related BrainMass Solutions

  • Treasury Bills Returns and Inflation

    return Real return= -0.0155 =-0.1241 / 8 Average real return can also be calculated as the difference between average T-bill return and average inflation Average T-Bill return= 0.0775 =0.6197 / 8 Average Inflation

  • Measuring risk and rates of return

    Average return= 1.50% Standard deviation of return= 1.97% Annual returns Average return= 18.00% Standard deviation of return= 6.82% b.

  • Which project should be accepted

    a) Project A is of average risk and has a return of 9%. b) Project B is of below-average risk and has a return of 8.5%. c) Project C is of above-average risk and has a return of 11%.

  • Average Nominal Risk and Average Real Return

    ., 32.16)) Average real return % b. What was the average nominal risk premium on Crash-n-Burn's stock? (Round your answer to 1 decimal place. (e.g., 32.1)) Average nominal risk % average return=(10-11+18+19+10)/5=9.2% a.

  • Calculating the various statistical measures

    496580 Calculate the real return, average real return, risk premium, average risk premium and standard deviation of risk premium in the given case.

  • Value of Portfolio

    We calculate the value of portfolio using geometric average return and not arithmetic average return.

  • Expected return, standard deviation, coefficent of variation

    demand occurs Weak 0.1 (50%) Below Average 0.2 (5) Average 0.4 16 Above Average 0.2 25 Strong 0.1 60 1 Calculate the stock's expected return, standard deviation, and coefficient of variation Please see the attached

  • Identifying the Appropriate Investment Proposal

    Project B, which is of below-average risk and has a return of 8.5%. Solution: a. Project C, which is of above-average risk and has a return of 11%. Expected return of 11% is less than risk adjusted WACC of 12% (above risk project).

  • Realized Rates of Returns

    a) Average rate of return. The appropriate average here is geometric average.

  • Return on tresury Bills, Bond Valuation

    Please see attached file Answers questions on average return, standard deviation of return, average real return for treasury bills and valuation of bonds.

View More Related Solutions