Question

The S&P 500 showed the following TRs for a 6 year period: 11.1 percent, -5.2 percent, 20.3 percent, 26.7 percent, -12.4 percent, and 2.2 percent. (a) (b) (c) (d) Calculate the arithmetic mean return for the 6 year period. Calculate the geometric mean return for the 6 year period. Which measure is best for forecasting next year's return? What is your best estimate of the value of a $1000 investment in five (5) years? 30. John Crossborder buys 1 share of Telmex at 140 pesos when the value of the peso is stated in dollars at $0.35. One year later, Telmex is selling for 160 pesos. If after 1 year the value of the pesos is $0.29, what will John's rate of return be in U. S. dollars?

          The S&P 500 showed the following TRs for a 6 year period: 11.1 percent, -5.2 percent, 20.3 percent, 26.7 percent, -12.4 percent, and 2.2 percent. (a) (b) (c) (d) Calculate the arithmetic mean return for the 6 year period. Calculate the geometric mean return for the 6 year period. Which measure is best for forecasting next year's return? What is your best estimate of the value of a $1000 investment in five (5) years? 30. John Crossborder buys 1 share of Telmex at 140 pesos when the value of the peso is stated in dollars at $0.35. One year later, Telmex is selling for 160 pesos. If after 1 year the value of the pesos is $0.29, what will John's rate of return be in U. S. dollars?

Added by Marc D.

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