Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem1: You have $10,000 to invest. You do not want to take any risk, so you will put the funds in a savings account at the local bank. Of the following choices, which one will produce the largest sum at the end of 22 years?

[A] An account that compounds interest quarterly.

[B] An account that compounds interest monthly.

[C] An account that compounds interest annually.

[D] An account that compounds interest daily.

problem2: If there is a 20 percent chance we will get a 16 percent return, a 30 percent chance of getting a 14 percent return, a 40 percent chance of getting a 12 percent return, and a 10 percent chance of getting an 8 percent return, what is the expected rate of return?

[A] 14%

[B] 15%

[C] 12%

[D] 13%

problem3: Which of the following statements is true about time value of money?

[A] The future value of a single sum will be greater if funds earn 12% instead of 6%.

[B] The future value of a single sum will be unaffected by the length of time funds are invested.

[C] The future value of a single sum will be greater if funds earn 5% instead of 10%.

[D] The future value of a single sum will be unaffected by the rate of return at which funds grow.

problem4: If you hold a portfolio made up of the following stocks: Investment Value Beta Stock A $2,000 1.5 Stock B $5,000 1.2 Stock C $3,000 0.8 find out the beta of the portfolio?

[A] 1.32

[B] 1.17

[C] 1.14

[D] Can't be determined from information given.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M920917

Have any Question? 


Related Questions in Basic Finance

Suppose you are expecting your fourth child in six months

Suppose you are expecting your fourth child in six months and you need a bigger car. You have your eye on a used three-year-old minivan that currently costs approximately $10,000. You are concerned about the pricing and ...

Focus on the monthly log returns in percentages of ge stock

Focus on the monthly log returns in percentages of GE stock and the S&P 500 index. Build a time-varying correlation GARCH model for the bivariate series using a logistic function for the correlation coefficient. Check th ...

Nbspq1 nbspgiven the following assumptions construct cash

Q1.  Given the following assumptions, construct cash flows on both a de-levered and leveraged basis.  Make sure to label each clearly.  Project involved is a petrochemical plant. Indicate whether you agree that it could ...

1 select one us publicly traded company and review its most

1. select one U.S. publicly traded company and review its most recent Annual Report. (You may use one of the three companies you selected for your Stock Journal assignment.) o Use the Income Statement and Balance Sheet t ...

The hartnett corporation manufactures baseball bats with

The Hartnett Corporation manufactures baseball bats with Pudge Rodriguez's autograph stamped on them. Each bat sells for $35 and has a variable cost of $22. There are $97,500 in fixed costs involved in the production pro ...

Define the term stabilization policy and describe how it

Define the term stabilization policy and describe how it can be used to reduce the volatility of economic growth and inflation. Do stabilization policies improve everyone's welfare?

Yield curve what factors influence the shape of the yield

Yield Curve : What factors influence the shape of the yield curve? Describe how financial market participants use the yield curve.

1 youve decided to capitalize 100 of your new business by

1. You've decided to capitalize 100% of your new business by obtaining a loan from a local bank. Your initial funding will A. include personal and equity financing. B. include equity and start-up financing. C. consist of ...

Bull what are the major provisions of the glbabull what is

• What are the major provisions of the GLBA? • What is an FHC? • How does a bank holding company become an FHC? • What conditions must be met to become an FHC?

1an investor believes that a certain property is worth

1. An investor believes that a certain property is worth $10,000,000. The seller refuses to sell it for that amount, but has offered to provide a 5-year interest-only loan for $5,000,000 at 4% interest (annual payments a ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate