Question
Angie just won the lottery. The prize is yearly payments of $100,000 compounded annually for 30 years with the first payment being made today. What
Angie just won the lottery. The prize is yearly payments of $100,000 compounded annually for 30 years with the first payment being made today. What is the value of this prize today at an 8% interest rate?
| $1,125,778.33 |
| $1,215,840.60 |
| $1,271,650.59 |
| $1,280,128.26 |
|
|
What is the present value of $10,000 to be received in 5 years at 12%?
| $5,674.27 |
| $8,928.57 |
| $17,623.42 |
| none of the above |
Your are given the following information:
Hotel X
Return: 10%
Weight (proportion of portfolio): 75%
Risk (standard deviation of return): 3%
Hotel Y
Return: 20%
Weight (proportion of portfolio): 25%
Risk (standard deviation of return): 9%
Calculate the standard deviation of the portfolio with a of 0.
| 4.5% |
| 3.18% |
| 0% |
| none of the above |
If asset x has a standard deviation of 10 percent, and the market portfolio has a standard deviation of 20 percent, and the correlation of their returns is .5, what is the beta?
| 1.0 |
| .5 |
| .25 |
| 0 |
Given a two-year loan of $50,000 and an annual interest rate of 8 percent, how much interest will accrue during the life of the loan? (Assume no principal payments during the term.)
| $4,000 |
| $8,000 |
| $400 |
| None of the above |
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