1

Kristina is 25 years old. She wants to begin saving for retirement, with the first payment to come one year from now. She can save $10,000 per year, and her financial advisor advises her to invest in the stock market, which the financial advisor expects to provide an average return of 15% in the future. If Kristina follows her financial advisor's advice, how much money will she have at 75.

$37,124,531.71. $57,500,000.00. $82,127,930.17. $72,177,162.77.

Question 2. Continued from Question 17, Kristina expects to live for 15 years after she retires at 75. If her investments continue to earn the same rate, how much will she be able to withdraw at the end of each year after retirement at 75. (Points : 3.3)

$12,343,525.65. $9,833,480.53. $6,348,927.99. $14,045,276.56.

Question 19.3. Roenfeld Corp believes the following probability distribution exists for its stock. What is the expected return of Roenfeld Corp's stock? State of the Probability of State Stock's Expected Economy Occurring Return Boom 0.19 25% Normal 0.50 15% Recession 0.31 5% (Points : 3.3)

13.80% 15.00%. 45.00%. 27.50%.

Question .4. Continued from Question 19, what is the standard deviation on the Roenfeld Corp's stock? (Points : 3.3)

2.04%. 6.97%. 14.29%. 0.49%.

Question .5. Continued from Question 19 and Question 20, what is the coefficient of variation on Roenfeld Corp's stock? (Points : 3.3)

0.1478. 1.0355. 0.0355. 0.5050.

Question 6. HR Industries has a beta of 1.8, and LR Industries has a beta of 0.70. The required return on an index fund that holds the entire stock market is 15%. The risk-free rate of interest is 3.5%. By how much does HR Industries's required return exceed LR Industries's required return? (Hint: The beta of an index fund that holds the entire stock market is 1.) (

12.65%. 16.50%. 3.30%. 15.65%.