1.

You are interested in saving money for your first house. Your plan is to

make regular deposits into a savings account that will earn 14 percent.

Your first deposit of $5,000 will be made today. You also plan to make 4

additional deposits at the beginning of each of the next four years.

How much money will be in your account after five years?

2.

Here are the expected returns on two stocks:

Returns

Probability X Y

0.3 30% - 20%

0.4 15% 15%

0.3 -20% 40%

If you form a 50-50 portfolio of the two stocks, what are the portfolios expected return, standard deviation, and coefficient of variation?Compare them with those of stock X. Suggest your choice between the portfolio and stock X. Provide the reason for your choice.

3.Suppose you borrowed $15,000 at a rate of 8% and must repay it in 5 equal installments at the end of each of the next 5 years. Set up an amortization schedule including schedule table. Discuss the trend in the payments of principal and interest. Ignore rounding errors.

I'd appreciate your reply.