Coursera course Corporate Finance Essentials quiz 1 solution. It is online course which is offered by the Coursera.

Risk and Return

Quiz 1

8 questions answers

1. 

Consider the returns of the MSCI index of developed markets equity in column C of the Excel file that goes with this quiz. Given the returns over the 1988-2013 period, what has been the arithmetic mean annual return of these markets?

Answer:-       9.7%

2. 

Consider the returns of the MSCI index of emerging markets equity in column D of the Excel file that goes with this quiz. Given the returns over the 1988-2013 period, what has been the arithmetic mean annual return of these markets?

Answer:-       17.6%

3. 

Consider the returns of the MSCI index of developed markets equity in column C of the Excel file that goes with this quiz. Given the returns over the 1988-2013 period, what has been the geometric mean annual return of these markets?Question text

Answer:-       7.9%

4. 

Consider the returns of the MSCI index of emerging markets equity in column D of the Excel file that goes with this quiz. Given the returns over the 1988-2013 period, what has been the geometric mean annual return of these markets?

Answer:-       12.1%

5. 

Consider the returns of the MSCI index of developed markets equity in column C of the Excel file that goes with this quiz. Given the returns over the 1988-2013 period, what has been the standard deviation of annual returns (volatility) of these markets?

Answer:-       18.0%

6. 

Consider the returns of the MSCI index of emerging markets equity in column D of the Excel file that goes with this quiz. Given the returns over the 1988-2013 period, what has been the standard deviation of annual returns (volatility) of these markets?

Answer:-       34.7%

 

7. 

Consider the returns of the MSCI index of developed markets equity in column C of the Excel file that goes with this quiz. If you had invested $100 in these markets at the very beginning of 1988, how much money would you have at the end of 2013?

Answer:-       $729

8. 

Consider the returns of the MSCI index of emerging markets equity in column D of the Excel file that goes with this quiz. If you had invested $100 in these markets at the very beginning of 1988, how much money would you have at the end of 2013?

Answer:-       $1,956