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Can you explain these two question? 3. Ferris Bueller has borrowed from The Ferrari Bank at a rate of 7% and will repay the loan

Can you explain these two question?

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3. Ferris Bueller has borrowed from The Ferrari Bank at a rate of 7% and will repay the loan with interest over the next five years. The scheduled payments, starting at the end of the year are as follows- $550,000, $560,000, $750,000, $875,000, and $1,000,000. What is the present value of these payments? N=5 1/8 = 7 2,995,887 4 You own a portfolio consisting of the securities listed below. The expected return for each security is as shown. What is the expected return on the portfolio? Stock Number of Shares 300 450 Price per Share $11 w 19 Expected Return 8.9% 11.6% 28.4% 12.7% 61.6 100 48 575 33 14.19%

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