Refer to the Information provided below. You have been provided with annual retu
ID: 2641387 • Letter: R
Question
Refer to the Information provided below. You have been provided with annual returns over the last 40 years to three different securities. (1) calculate what the account balances would be on December 31, 2014 if you had invested $1000 in each of these securities on January 1, 1975.
Year Security A Security B Security C 1975 -0.052 -0.0213 -0.0712 1976 0.0924 0.014 0.0822 1977 0.2842 0.0695 0.3525 1978 0.0937 0.0703 0.1178 1979 0.1513 0.0228 0.1608 1980 0.3277 0.039 0.2978 1981 -0.0272 0.0179 0.0589 1982 -0.0972 0.0573 0.0212 1983 0.0999 0.0147 0.1189 1984 0.2666 0.0227 0.2578 1985 0.0494 0.0749 0.0847 1986 0.2039 0.0624 0.2592 1987 -0.2643 0.0626 -0.4078 1988 0.2563 0.0759 0.2845 1989 0.0027 0.0293 -0.155 1990 -0.3632 0.0324 -0.4785 1991 0.2864 0.0635 0.2151 1992 0.189 0.0966 0.2135 1993 0.2358 -0.0205 0.4235 1994 0.2822 0.0101 0.2589 1995 0.2643 0.0253 0.2577 1996 0.2359 0.0144 0.2412 1997 0.103 0.0171 0.1128 1998 0.2455 0.0442 0.2578 1999 0.2094 -0.0189 0.1907 2000 0.0171 0.051 -0.1296 2001 0.3183 0.0456 0.3355 2002 0.2748 0.0112 0.3419 2003 0.0296 0.0503 0.0876 2004 -0.0306 0.1128 -0.1433 2005 0.2871 0.0172 0.4222 2006 -0.0683 0.0101 0.0399 2007 0.0741 0.008 0.1524 2008 -0.0315 0.0605 0.0197 2009 -0.1252 0.0616 0.1202 2010 0.2513 0.0735 0.3061 2011 0.0987 0.0056 0.0245 2012 0.1832 0.0262 0.2014 2013 0.2484 0.0575 0.2523 2014 0.0571 0.0442 -0.1243Explanation / Answer
answer..
Investment $1,000.00 Year Return(A) Return(B) Return(C) Return(A) Return(B) Return(C) 1975 -0.052 -0.0213 -0.0712 -$52.00 -$21.30 -$71.20 1976 0.0924 0.014 0.0822 $92.40 $14.00 $82.20 1977 0.2842 0.0695 0.3525 $284.20 $69.50 $352.50 1978 0.0937 0.0703 0.1178 $93.70 $70.30 $117.80 1979 0.1513 0.0228 0.1608 $151.30 $22.80 $160.80 1980 0.3277 0.039 0.2978 $327.70 $39.00 $297.80 1981 -0.0272 0.0179 0.0589 -$27.20 $17.90 $58.90 1982 -0.0972 0.0573 0.0212 -$97.20 $57.30 $21.20 1983 0.0999 0.0147 0.1189 $99.90 $14.70 $118.90 1984 0.2666 0.0227 0.2578 $266.60 $22.70 $257.80 1985 0.0494 0.0749 0.0847 $49.40 $74.90 $84.70 1986 0.2039 0.0624 0.2592 $203.90 $62.40 $259.20 1987 -0.2643 0.0626 -0.4078 -$264.30 $62.60 -$407.80 1988 0.2563 0.0759 0.2845 $256.30 $75.90 $284.50 1989 0.0027 0.0293 -0.155 $2.70 $29.30 -$155.00 1990 -0.3632 0.0324 -0.4785 -$363.20 $32.40 -$478.50 1991 0.2864 0.0635 0.2151 $286.40 $63.50 $215.10 1992 0.189 0.0966 0.2135 $189.00 $96.60 $213.50 1993 0.2358 -0.0205 0.4235 $235.80 -$20.50 $423.50 1994 0.2822 0.0101 0.2589 $282.20 $10.10 $258.90 1995 0.2643 0.0253 0.2577 $264.30 $25.30 $257.70 1996 0.2359 0.0144 0.2412 $235.90 $14.40 $241.20 1997 0.103 0.0171 0.1128 $103.00 $17.10 $112.80 1998 0.2455 0.0442 0.2578 $245.50 $44.20 $257.80 1999 0.2094 -0.0189 0.1907 $209.40 -$18.90 $190.70 2000 0.0171 0.051 -0.1296 $17.10 $51.00 -$129.60 2001 0.3183 0.0456 0.3355 $318.30 $45.60 $335.50 2002 0.2748 0.0112 0.3419 $274.80 $11.20 $341.90 2003 0.0296 0.0503 0.0876 $29.60 $50.30 $87.60 2004 -0.0306 0.1128 -0.1433 -$30.60 $112.80 -$143.30 2005 0.2871 0.0172 0.4222 $287.10 $17.20 $422.20 2006 -0.0683 0.0101 0.0399 -$68.30 $10.10 $39.90 2007 0.0741 0.008 0.1524 $74.10 $8.00 $152.40 2008 -0.0315 0.0605 0.0197 -$31.50 $60.50 $19.70 2009 -0.1252 0.0616 0.1202 -$125.20 $61.60 $120.20 2010 0.2513 0.0735 0.3061 $251.30 $73.50 $306.10 2011 0.0987 0.0056 0.0245 $98.70 $5.60 $24.50 2012 0.1832 0.0262 0.2014 $183.20 $26.20 $201.40 2013 0.2484 0.0575 0.2523 $248.40 $57.50 $252.30 2014 0.0571 0.0442 -0.1243 $57.10 $44.20 -$124.30 Total Return $4,659.80 $1,511.50 $5,061.50 Principal $1,000.00 $1,000.00 $1,000.00 Bal. on Dec.14 $5,659.80 $2,511.50 $6,061.50