What are the arithmetic and geometric returns for Berkshire Hathaway over this time period?
a. Geometric: 21.4% Arithmetic: 24.7%
b. Geometric: 24.7% Arithmetic: 21.4%
c. Geometric 24.7% Arithmetic: 27.0%
d. Geometric: 24.7% Arithmetic: 24.7% - ANS Geometric: 21.4% Arithmetic: 24.7%
...
What are the arithmetic and geometric returns for Berkshire Hathaway over this time period?
a. Geometric: 21.4% Arithmetic: 24.7%
b. Geometric: 24.7% Arithmetic: 21.4%
c. Geometric 24.7% Arithmetic: 27.0%
d. Geometric: 24.7% Arithmetic: 24.7% - ANS Geometric: 21.4% Arithmetic: 24.7%
What is the standard deviation of annual returns for Berkshire Hathaway using the data from
problem 1? Assume that you have a sample and not the complete population.
a. 21.4%
b. 24.7%
c. 29.4%
d. 29.8% - ANS D. 29.8%
When did the U.S. Treasury begin offering a complete spectrum of maturities for the national
debt?
a. Civil War
b. World War I
c. World War II
d. In 1970 when Nixon abandoned the gold standard - ANS C. World War II
The distribution of annual returns on U.S. equities is positively skewed. This means
a. The median stock return is less than the average stock return.
b. The median stock return is greater than the average stock return.
c. Standard deviation estimates are not accurate.
d. The risk of loss is higher than one would estimate from the variance. - ANS The median
stock return is less than the average stock return.
What is the risk (expressed as a standard deviation) of a portfolio with the following weights:
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