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SCENARIO 3-5 The Rate of Return of a Fortune 500 Company Over

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SCENARIO 3-5
The rate of return of a Fortune 500 company over the past 15 years are: 3.17%, 4.43%, 5.93%, 5.43%,7.29%, 8.21%, 6.23%, 5.23%, 4.34%, 6.68%, 7.14%, -5.56%, -5.23%, -5.73%, -10.34%
-Referring to Scenario 3-4,the arithmetic mean of the customs data is _____.


Definitions:

Perfect Hedge

A hedging strategy that completely eliminates the risk associated with a particular position or portfolio.

Interest Rates

The fee, shown as a percentage of the principal amount, that a lender requires from a borrower for the utilization of resources.

Prices Rise

An economic phenomenon where the general level of prices for goods and services increases over time.

Futures Contract

An arrangement, enforceable by law, where individuals agree to trade a specified commodity or financial instrument at a previously established price, to be fulfilled at a specified time ahead.

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