1 for a minimum of 4 different financial assets see note 1...

1. For a minimum of 4 different financial assets [see Note 1 below], students must report: 1. The ticker of the financial asset. 2. The opening transaction type (did you Buy/Long or Sell/Short?). 3. The opening transaction price/date. 4. Dividend received (paid) if necessary [see Note 3 below] 5. The closing transaction price/date (or the current price/date if the position is held). 6. Assume the position was fully closed, even if it was only partially closed [see Note 2 below]. 7. Holding Period Return (HPR) 8. Annualized Percentage Rate (APR) 9. Effective Annual Return (EAR, assuming compounding) 10. Continuous Compound Annual Return (Rcc)

Transcript

00:01 So we have the returns from an investment are 1 % in year 1, and 3 % in year 2, and 2 .8 % in the first half of year 3.

00:12 So we want to know what the overall increase was as an annual return.

00:17 So let's go ahead and just get a particular amount.

00:20 Let's say we have our principal equals to 100, because that we can base it on 100 and get our percent that way.

00:27 And now what's it going to be at the end of year 1? since this is all annual, we can just say p times 1 plus r.

00:36 And so that's going to be our principal, and that'll be 1 plus .01.

00:43 And since i'm using a principle of 100, i'm just going to have 100 times 1 .01.

00:49 So that's going to simply be $101.

00:52 So it's beginning of year 2 that's going to be our principal.

00:55 So we're looking at a principle of 101 and an interest rate of 3%, using the same.

01:01 Same formula.

01:02 We're going to say our amount in our account then it's going to be 101, and then go 1 plus .03.

01:10 And that's going to be 101, and then we'll say times 1 .03.

01:14 And let's get a calculator for that one.

01:16 So we're going to have 101 times 1 .03 to be an amount of 104 .03 that will now be in the account.

01:28 Now for the second one, it's going to be a little bit different there because we're looking at only half a year.

01:34 So let's go ahead and calculate the interest on that half year.

01:38 So we're going to go interest.

01:39 It's going to be my principal, which now is 104 .03 times the 0 .28...

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