1

(i) You were lucky to find an investment that provide a return of 6%. Because this rate is acceptable to you, you decided to invest $10,000 on a five-year term. How much will you earn interest?

Select one:

a. $3,450.25

b. $4,450.20

c. $3,652.24

d. $3,382.26

(ii)

Assume security A has a standard deviation of 32% and security B has a standard deviation of 22%. Is it true to say that security B is more risky than security A?

Select one:

True

False

(iii)

Assume ABC has the average inventories $2,000,000 and COGS is $8,500,000. What is the Inventory Conversion Period?

Select one:

a. 77.65 days

b. 4.25 days

c. 175.75 days

d. 85.88 days