Need some help on this powerpoint. I am lost as to what to enter and which equations to use. Please see the below and the attached.
Problem 1: The following two figures illustrate historical home price trend and interest rate for the 30-years fixed rate mortgage in the United States. Based on the information, please answer the following questions
if today were in 2013
.
Assuming that history will repeat itself, what do you think of the U.S. housing market for the next 10 years? How about mortgage rate for the next 10 years?
Based on your prediction, answer the two questions below:
a)If you have money, should you invest in the housing market?
b)If your answer in a) is “Yes”, and one lender allows you to borrow money, should you borrow money to buy the property? Why?
Problem 2:
Catherine Wood,
CEO & CIO, ARK
Innovation
Investment
- In 2020, Cathie Wood was regarded as one of the most talented investment managers in the industry. This is no surprise:
ARKK
Innovation ETF returned
a whopping 153%
in 2020 alone, over three times more than the Nasdaq 100’s already impressive 48%.
- As of 12/14/2021, the year to date (YTD) return for ARKK Innovation ETF was
down 24.96%,
while the Nasdaq 100’s had a YTD return of up 23.48%.
During the interview with Matthew Fox on Dec 9, 2021*, Cathie Wood defends her beaten-down portfolio and estimates
Ark fund's returns will quadruple in the next 5
years, and she explained,
"We have seen such a correction, primarily in innovation stocks as the market scaled to all time highs, that based on our estimates,
our 5-year compound annual rate of return expectation has gone from 15% at the peak in March, to nearly 40%
today”
With the information below,
please discuss whether her statement is correct
that “our 5-year compound annual rate of return expectation has gone from 15% at the peak in March, to nearly 40% today”.
Extracted text: 30-year Fixed Morgate Rate: 1971-2013 18% 16% 14% 12% Historical average: 8.6% 10% 8% 6% 4% 2% 0% 2013Q3 2012Q3 2011Q3 2010Q3 2009Q3 2008Q3 2007Q3 2006Q3 2005Q3 2004Q3 2003Q3 2002Q3 2001Q3 2000Q3 1999Q3 1998Q3 1997Q3 1996Q3 1995Q3 1994Q3 1993Q3 1992Q3 1991Q3 1990Q3 1989Q3 1988Q3 1987Q3 1986Q3 1985Q3 1984Q3 1983Q3 1982Q3 1981Q3 1980Q3 1979Q3 1978Q3 1977Q3 1976Q3 1975Q3 1974Q3 1973Q3 1972Q3 1971Q3
Extracted text: ARK Innovation ETF (ARKK) * In watchlist 8 Visitors trend 2w + 10w t 9M ↑ Quote Lookup NYSEArca - NYSEArca Delayed Price. Currency in USD 96.17 -1.56 (-1.60%) 95.92 -0.25 (-0.26%) Pick 3 free reports per quarter fro profiled At close: December 10 04:00PM EST After hours: Dec 10, 07:59PM EST All research reports Learn Summary Chart Conversations Historical Data Profile Options Holdings Performance Risk 10 5D IM GM YTD iv sY Max Full screen 101.50 99.17 97.73 96.83 95.17 94.50 10 AM 12 PM 02 PM 04 PM Trade prices are not sourced from all markets Previous Close 97.73 Net Assets 25.528 People Also Watch Symbol Last Price Change Орen 98.95 NAV 108.84 ARKG 60.65 -1.08 Bid 95.88 x 900 PE Ratio (TTM) N/A ARK Genomic Revolution ETF ARKW 125.42 -2.31 Ask 95.93 x 1100 Yield 0.00% ARK Next Generation Internet ETF Day's Range 95.61 - 100.57 YTD Daily Total Return -13.40% ARKF 42.47 -0.87 ARK Fintech Innovation ETF 52 Week Range 89.03 - 159.70 Beta (5Y Monthly) 1.56 -0.44 ARKQ ARK Autonomous Technology & Robotics . 78.54 Volume 13,002,597 Expense Ratio (net) 0.75% PLTR 18.94 -0.27 Avg. Volume 6,809,230 Inception Date 2014-10-30 Palantir Technologies Inc.