a- What is the present value of $7,926 payable at the end of 12 years? Use a nominal rate (monthly compounding) of 2.68%. SET YOUR CALCULATOR TO 4 DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END.

b- What is the effective annual rate (EAR) for a nominal rate (quarterly compounding) of 4.34 %?

SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE NUMBER AS PERCENTAGE ROUNDING TO 2 DECIMALS. DO NOT ENTER THE % SYMBOL..i.e. if your answer is 7.7711%, enter it as 7.77

c- Consider the following returns and states of the economy for TZ.Com.:

Economy	Probability	Return
Weak	40%	2%
Normal	50%	10%
Strong	10%	22%

What is the standard deviation of TZ's returns? SET YOUR CALCULATOR TO FOUR DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE %. FOR EXAMPLE, IF YOUR ANSWER IS 7.7011% ENTER IT AS 7.70.