Question

Refer to Fidelity® International Index Fund. Its ticker symbol is FSPSX. Fund Values as of September...

Refer to Fidelity® International Index Fund. Its ticker symbol is FSPSX.

Fund Values as of September 30th

2009 $10,000

2010. $10,324

2011 $9,314

2012 $10,682

2013 $13,247

2014 $13,815

2015 $12,680

2016 $13,525

2017 $16,095

2018 $16,518

2019 $16,354


Question 1: What was its 10-year average annual return? That is, what was its geometric average return for the ten years ending 9/30/2019?  

Stated differently, if I had invested in FSPSX ten years ago(i.e., on

9/30/2009), I would have earned ______% per year, compounded annually.

Show your work here:

Question 2: What was its 5-year average annual return? That is, what was its geometric average return for the five years ending 9/30/2019?

Stated differently, if I had invested in FSPSX five years ago (i.e., on 9/30/2014), I would have earned ______% per year, compounded annually.

Show your work here:

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You have found the following mutual fund on Fidelity. It’s ticker symbol is FNMIX. It is...
You have found the following mutual fund on Fidelity. It’s ticker symbol is FNMIX. It is Fidelity New Markets Income Fund. The values of a “Hypothetical $10,000 Investment” on November 30, 2009 are shown below. This assumes you invested $10,000 on November 30, 2009, reinvested all income, and made no further investments. Value on November 30 of each respective year. 2009 $10,000 2010 $11,091 2011 $11,829 2012 $14,220 2013 $13,386 2014 $14,560 2015 $14,473 2016 $15,791 2017 $17,633 2018 $16,289...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? b) How much money do you have in your account today? c) If you wish to have $85,000 now,...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an...
Fifteen years ago, you deposited $12,500 into an investment fund. Five years ago, you added an additional $20,000 to that account. You earned 8%, compounded semi-annually, for the first ten years, and 6.5%, compounded annually, for the last five years. Required: 1. a) What is the effective annual interest rate (EAR) you would get for your investment in the first 10 years? 2. b) How much money do you have in your account today? 3. c) If you wish to...
Jennifer invests her money in a portfolio that consists of 70% Fidelity Spartan 500 Index Fund...
Jennifer invests her money in a portfolio that consists of 70% Fidelity Spartan 500 Index Fund and 30% Fidelity Diversified International Fund. Suppose that, in the long run, the annual real return X on the 500 Index Fund has mean 10% and standard deviation 15%, the annual real return Y on the Diversified International Fund has mean 9% and standard deviation 19%, and the correlation between X and Y is 0.6. a) The return on Jennifer’s portfolio is R =...
Your mutual fund has just sent you its annual performance review. In it, you are told...
Your mutual fund has just sent you its annual performance review. In it, you are told that the returns for the past 3 years were: a loss of 20% three years ago, a 10% gain two years ago, and a 25% gain last year. The opening remark in the review says you will be glad to know your fund has provided an average return of 5% over the past three years. Suppose you initially invested $1,000 three years ago. If...
6) Dawn Swift discovered that 20 years ago, the average tuition for one year at an...
6) Dawn Swift discovered that 20 years ago, the average tuition for one year at an Ivy League school was $4,500. Today, the average cost is $29,000. What is the growth rate in tuition cost over this 20-year period? 7) A Max, Inc. deposited $2,000 in a bank account that pays 12% interest annually. What will the dollar amount be in four years, assuming that interest is paid annually? 8) You bought a painting 10 years ago as an investment....
1. Julia purchased an investment grade gold coin today for $375,000. She expects it to increase...
1. Julia purchased an investment grade gold coin today for $375,000. She expects it to increase in value at a rate of 4.5% compounded annually for the next 6 years. How much will the coin be worth at the end of the sixth year? N I/Y PV PMT FV                                                                                                    2. Moon has been investing $2,500 quarterly for the past 10 years in an equity mutual fund. How much is the fund worth now assuming she has earned 8.5% compounded...
ABCO is a conglomerate that has ksh4 billion in common stock. Its capital is invested in...
ABCO is a conglomerate that has ksh4 billion in common stock. Its capital is invested in four subsidiaries: Entertainment (ENT), Consumer products (CON), Pharmaceuticals (PHA) and insurance (INS). The four subsidiaries are expected to perform differently, depending on the economic environment as follows: investment in ksh millions Poor economy Average economy Good economy ENT 1,200 20% -5% -8% CON 800 15% 10% -20% PHA 1,400 -10% -5% 27% INS 600 -10% 10% 10% Assuming that the three economic outcomes (1)...
1) Quick Foods has sales of $238,900, total assets of $217,000, total equity of $121,300, net...
1) Quick Foods has sales of $238,900, total assets of $217,000, total equity of $121,300, net income of $18,700, and dividends paid of $6,000. What is the internal growth rate? 2) What is the NPV of the following set of cash flows at a discount rate of zero percent? What if the discount rate is 15 percent? 3) There is an investment opportunity with the following set of cash flows; a) What is the internal rate of return (IRR)? b)...
1. You expect to receive a lump sum amount of $20,000 fifty years from now. But...
1. You expect to receive a lump sum amount of $20,000 fifty years from now. But you want that money now. So what is the present value of that sum if the current discount rate is 7.5%? Assume annual compounding. 2. You have just purchased a $1,500 five year certificate of deposit (CD) from a savings bank which will pay 3.5% interest compounded monthly. What will that CD be worth at maturity? 3. Calculate the present value of an ordinary...