1) Compute the expected returns of your portfolio
Stock Invest Exp Ret
A $318 7.6%
B $790 17.1%
C $1,929 21.9%
2) You have observed the returns on XYZ’s stocks over the last 5 years which are given below:
4.6%, 9.2%, -11.6%, 10.8%, -4.3%
Determine the geometric average returns on the stock over this 5-year period.
3) Assume nominal rate is= 9.21% and inflation rate is= 4.26%. Answer for the real rate.