Calculate the expected return for 2016 for company a


1. An investor purchases a, asset on July 3 2009 for $32,000, which is currently valued at $32,250. The asset generated cash flows of $3,000 over this period. The investor

a. experiences a realized gain of $250 and e recognized gain of $3,250

b. experiences an unrealized gain of $3,250 and income of $3,000

c. experiences an unrealized gain of $250 and income of $3,000

d. experiences an realized gain of $250 and income of $3,000

Following are the historical returns for Company A Year A

2011 12.0%

2012 3.0%

2013 7.0%

2014 -5.0%

2015 6.0%

Based on the information from 2011 through 2015:

2. Calculate the expected return for 2016 for Company A (artithmetic average)

3. Calculate the sample standard deviation for Company A (sample)

4. Calculate the geometric average for Company A

5. Based on a normal distribution and using the arithmetic mean avereage for Company A, which is true

a. 34% of the historical return fell within the range of -1.52% and 10.92%

b. 68% of the historical return fell within the range of -1.37% and 10.64%

c. 68% of the historical return fell within the range of -1.52% and 10.92%

d 68% of the historical return fell within the range of -1.668% and 10.86%

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Financial Management: Calculate the expected return for 2016 for company a
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