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9. (Power of Compounding) If you'd like to have $5,000,000 at retirement in 45 years and you ext to earn 10% annually, which is
9. (Power of Compounding) If you'd like to have $5,000,000 at retirement in 45 years and you ext to earn 10% annually, which is around the average return over the past 50 years, what lump sum would you have to invest today? 5-2. (Compound interest) To what amount will the following investments accumulate? a. $5,000 invested for 10 years at 10 percent compounded annually b. $8,000 invested for 7 years at 8 percent compounded annually c. $775 invested for 12 years at 12 percent compounded annually d. $21,000 invested for 5 years at 5 percent compounded annually 10. What is meant by the investor's required rate of return? 11. How do we measure the riskiness of an asset? 12. What is (a) unsystematic risk (company-unique or diversifiable risk) and (b) systematic risk (market or nondiversifiable risk)? 13. How do we measure the beta of a portfolio?
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