Use the Table for the Question(s) Below -The Average Annual Return on the All Ords from 2003

question 80

Multiple Choice

Use the table for the question(s) below.
Consider the following realised annual returns:
$\begin{array} { l c c } \hline \text { Year-end } & \begin{array} { c } \text { All Ords } \\\text { Realised } \\\text { Return }\end{array} & \begin{array} { c } \text { Westpac } \\\text { Realised } \\\text { Return }\end{array} \\\hline 2003 & 23.6 \% & 46.3 \% \\\hline 2004 & 24.7 \% & 26.7 \% \\\hline 2005 & 30.5 \% & 86.9 \% \\\hline 2006 & 9.0 \% & 23.1 \% \\\hline 2007 & - 2.0 \% & 0.2 \% \\\hline 2008 & - 17.3 \% & - 3.2 \% \\\hline 2009 & - 24.3 \% & - 27.0 \% \\\hline 2010 & 32.2 \% & 27.9 \% \\\hline 2011 & 4.4 \% & - 5.1 \% \\\hline 2012 & 7.4 \% & - 11.3 \% \\\hline &\end{array}$
-The average annual return on the All Ords from 2003 to 2012 is closest to?

• A) 4.00%
• B) 9.75%
• C) 7.10%
• D) 8.75%

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Definitions:

Current Yield

The yearly earnings from interest or dividends, when divided by the security's current market price.

Capital Gains Yield

Results from changing prices and is calculated as (P1 - P0)/P0, where P0 is the beginning-of-period price and P1 is the end-of-period price.

Yield To Maturity

The total return anticipated on a bond if it is held until the end of its lifetime.

Current Yield

Current yield is a financial term used to describe the annual income (interest or dividends) earned from an investment, expressed as a percentage of the current price of the security.