Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1. Diversifiable risk becomes minimal with an adequately diversified portfolio of stocks. At this point the beta of the portfolio could potentially help to reduce (dampen) what kind of risk?

a. Systematic risk.
b. Unsystematic risk.
c. None of the above.

2. Assuming that the S&P 500 Index is representative of the stock market, beta is...

a. The slope of the characteristic line.
b. The average relationship between a stock's returns and those of the S&P 500 Index price.
c. All of the above.

3. Assuming a return of 9% on your investment, compounded quarterly. How much would a $1,000 investment be worth in 8 years?

a. $1,992.56
b. $2,038.10
c. $2,048.92

4. Annuity problem (Use formula with PV of an annuity): A retirement plan guarantees to pay you or your estate a fixed amount for 25 years. At the time of retirement you will have $100,000 to your credit in the plan. The plan anticipates earning 7% interest annually over the period you receive benefits. How much will your annual benefit (payment) be assuming the first payment occurs one year from your retirement date?

a. $6,182
b. $8,101
c. $8,581

5. Bet is a term that measures the systematic risk of a security, or a portfolio of securities, relative to the systematic risk of ______________________.

a. The stock market.
b. The security market line.
c. None of the above.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M924262

Have any Question? 


Related Questions in Basic Finance

Our data- ow analyses so far do not take advantage of the

Our data- ow analyses so far do not take advantage of the semantics of conditionals. Suppose we find at the end of a basic block a test such as How could we use our understanding of what the test x

An investor has 60000 to invest in a 280000 property he can

An investor has $60,000 to invest in a $280,000 property. He can obtain either a $220,000 loan at 9.5 percent for 20 years or a $180,000 loan at 9 percent for 20 years and a second mortgage for $40,000 at 13 percent for ...

Alpha ltd deposits 500 000 cash with the state bank on 1

Alpha Ltd deposits $500 000 cash with the State Bank on 1 July 2016 for three months, i.e. 92 days, until 30 September 2016. The bank prepares a Certificate of Deposit (CD) for Alpha Ltd, which earns an interest of 6% pe ...

Bills bakery expects earnings per share of 218 next year

Bill's Bakery expects earnings per share of $2.18 next year. Current book value is $3.9 per share. The appropriate discount rate for Bill's Bakery is 13 percent. Calculate the share price for Bill's Bakery if earnings gr ...

A small firm makes three similar products which all follow

A small firm makes three similar products, which all follow the same three-step process, consist- ing of milling, inspection, and drilling. Product A requires 12 minutes of milling, 5 minutes for inspection, and 10 minut ...

In early 2009 an article in the new york times

In early 2009, an article in the New York Times observed: "Without a cure for the problem of bad assets, the credit crisis that is dragging down the economy will linger, as banks cannot resume the ample lending needed to ...

The stock of bruin inc has an expected return of 22 percent

The stock of Bruin, Inc., has an expected return of 22 percent and a standard deviation of 35 percent. The stock of Wildcat Co. has an expected return of 14 percent and a standard deviation of 40 percent. The correlation ...

Capital investment analysisbramer corporations controller

Capital Investment Analysis Bramer Corporation's controller, Mara, was asked to prepare a capital investment analysis for a robot-guided aluminum window machine. This machine would automate the entire window-casing manuf ...

Ethics and financethe sarbanes-oxley act of 2002 sox was

Ethics and Finance The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the Enron scandal and other instances of accounting fraud. This act was passed to strengthen the role of the Securities and Exchange Com ...

1 what is experimental contamination2 does a nonequivalent

1. What is experimental contamination? 2. Does a nonequivalent groups pretest-posttest design eliminate local history as a potential explanation of the results? Explain.

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen