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me File Edit View History Bookmarks People Window Help 78 70% -S Tue Sep 11 1:24 PM Sh Do Homework -Jinchun Shi Student/playerHome ork.aspx?hor e vorkld-492753999&question de9&flush Secure https://w w w mat xl co defa se& d. 109 328centen Google Fall 2018 Section 001 MW Jinchun Shi& 9/11/18 1:24 PM Homework: P3 (Time Value of Money: Lump Sums) Fi score: 0 of 1 pt u P3-18 (similar to) Save 9 of 16 (14 complete) Score: 81.25%, 13 of 16 pts EQuestion Help ome Interest rate. Two mutual fund managers, Martha and David, have been discussing whose fund is the top performer. Martha states that investors bought shares in shares are now worth $58.00. David states that investors bought shares in his mutual fund 5 years ago for only her mutual fund 12 years ago for $28.00, and those different management periods? Why or why not? Which mutual fund manager has had the highest growth rate for the management period? (Select the best response.) eOption $3.40, and they are now worth $8.40. Which mutual fund manager had the higher growth rate for the management period? Should this comparison be made over A. 0 B. 0 C. 0 D. David has had the highest growth rate of 6.26% for the management pend. Martha has had the highest growth rate of 6.26% for the management period. David has had the highest growth rate of 19.83% for the management period. Martha has had the highest growth rate of 19.83% for the management period. Click to select your answer and then click Check Answer Check Answer Clear Al remaining This course (Fall 2018 Section 001 MW) is based on Brooks: Financial Management: Core Concepts, de Copyright 2018 Pearson EducationExplanation / Answer
Holding period return = (Present value/investment amount)^1/holding period -1
Growth rate in case of David is 19.83% which is higher than that of Martha's.
Option C - is correct.
Particulars Martha David Investment 28 3.4 Present value 58 8.4 Growth 30 5 Holding period 12 5 Growth rate 6.26% 19.83%Related Questions
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