Question
9. Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: -5%, 15%, 20%;
9. Florida Company (FC) and Minnesota Company (MC) are both service companies. Their historical return for the past three years are: FC: -5%, 15%, 20%; MC: 8%, 8%, 20%. Calculate the variances of return for FC and MC. a. FC: 100 MC: 256 b. FC: 350 MC: 96 c. FC: 175 MC: 48 d. None of the above
Internal rate of return (IRR) method is also called: A. Discounted payback period method B. Discounted cash-flow (DCF) rate of return method C. Modified internal rate of return (MIRR) method D. None of the above
If an investment project (normal project) has IRR equal to the cost of capital, the NPV for that project is: A. Positive B. Negative C. Zero D. Unable to determine
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Introduction To Derivatives And Risk Management
Authors: Don M. Chance, Robert Brooks
10th Edition
130510496X, 978-1305104969
