Rate of return a financial analyst for smart securities limited, paul chan, wishes to estimate the rate of return for two similar-risk investments, a and b. paul’s research indicates that the immediate past returns will serve as reasonable estimates of future returns. a year ago, investment a and investment b had market values of $63,000 and $35,000, respectively. during the year, investment a generated cash flows of $6,100, and investment b generated cash flows of $2,800. the current market values of investments a and b are $71,000 and $32,000, respectively. a. calculate the expected rate of return on investments a and b using the most recent year’s data



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