Over the past four years, a portfolio experienced returns of -8%, 4% 17% and -12%. The geometric mean return of the portfolio over the four year period is closest to:
A. ﹣0.37%
B. 0.25%
C. 8.99%
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The primary motivation for creating a collateralized mortgage obligation (CMO) is best described as the desire to redistribute which risk of investment in residential mortgages?
A. Default risk.
B. Liquidity risk.
C. Prepayment risk.
The probability of event A is 40%. The probability of event B is 60%. The joint probability of AB is 40%. The probability that A or B occurs or both occur is closest to:
A. 40%.
B. 60%.
C. 84%.
An analyst observes that the historic geometric returns are 9% for equities,3% for treasury bills, and 2% for inflation. The real rate of return and risk premium for equities are closest to:
A. 5.8% and 3.7%.
B. 6.9% and 3.8%.
C. 6.9% and 5.8%.
Under IFRS, which of the following financial statement elements most accurately represents inflows of economic resources to a company?
Assets.
B. Equity.
C. Revenues.