Ask Question, Ask an Expert


Ask Basic Finance Expert

The return distribution for the asset XYZ is as shown below:
Return Probability
- 0.1 0.10
+ 0.1 0.40
+0.20 0.30
+0.30 0.20

What is the standard deviation for the XYZ returns?
A. 0.0125
B. 0.1118
C. 0.0625
D. 0.0791

The beta of Microsoft's stock is 1.2, whereas the risk-free rate of return is 4 percent. Assume that the expected return on the market is 16 percent. Then, what is the expected return on Microsoft stock?
A. 8.80%
B. 28.00%
C. 18.40%
D. 23.20%

If you have a 3 year loan that requires $1,000 payments each year at 7% annual interest rate what would be the present value of the loan?
A. $2,624.32
B. $3,000.00
C. $3,210.00
D. $2,803.74

Robert has a mortgage on his home of $400,000 and has a fixed rate mortgage of 6.125% for 30 years. What would his monthly payments be for this loan?
A. $2,041.67
B. $2,596.55
C. $2,430.45
D. $2,788.46

What is the effective annual interest rate?
A. The simplest interest rate charged.
B. Rate that reflects compounding.
C. Rate with bank fees included.
D. Interest rate quoted by banks.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M927192

Have any Question? 

Related Questions in Basic Finance

Analyzing capital expendituresassume that you have received

Analyzing Capital Expenditures Assume that you have received a capital expenditure request for $52,000 for plant equipment and that you are required to do a justification analysis using capital budgeting techniques. The ...

1 what are the functions of working capital2 what is

1. What are the functions of working capital? 2. What is concentration banking? 3. Why are cash inflow, inventory turnover and maturity composition of debts factors that determine the level of liquid assets? 4. What is t ...

What are inflation- indexed bonds how do they reduce the

What are inflation- indexed bonds? How do they reduce the risk of holding long- term bonds? Does the interest rate on inflation- indexed bonds change after they have been issued?

Would a firm ever use short- term debt to finance long-

Would a firm ever use short- term debt to finance long- term capital expenditures? (Hint: Consider all possibilities for expected long- term rates.)  How should the government decide whether to increase or decrease its p ...

Rtio analysisextraordinary items and ratio analysis

Ratio Analysis "Extraordinary Items and Ratio Analysis" Please respond to the following: • Choose at least two items or events that you would consider to be extraordinary to a company. Propose the manner in which you wou ...

Xyz company paid a dividend of 437 in the past 12 months

XYZ company paid a dividend of $4.37 in the past 12 months, and it has a growth rate of 6.5 percent. The stock currently sells for $175. Calculate the required rate of return. Do not use a financial calculator or an onli ...

Assignmentcalculate the solutions to the following problems

Assignment Calculate the solutions to the following problems. YOU MUST SHOW YOUR WORK. 1. Low Tech Company has an expected ROE of 10%. The dividend growth rate will be ________ if the firm follows a policy of paying 40% ...

Homework setdirections answer the following questions on a

Homework Set Directions: Answer the following questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assi ...

Influence of money market activity on working capital

Influence of Money Market Activity on Working Capital : Assume that interest rates for most maturities are unusually high. Also, assume that the net working capital (defined as current assets minus current liabilities) l ...

Capital asset pricing model levine manufacturing inc is

(Capital Asset Pricing Model) Levine Manufacturing, Inc., is considering several investments. The rate on Treasury bills is currently 6.75 percent, and the expected return for the market is 12 percent. What should be the ...

  • 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