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i need just the answers of the following questions asap.......... i am doing the paper and i have just two hours to submit it...... QUESTION

i need just the answers of the following questions asap.......... i am doing the paper and i have just two hours to submit it......

QUESTION 43

Use the following information to answer Questions 43 and 44.

State of Economy

Probability of State ofEconomy

Return on Stock A

Return on Stock B

Recession

0.15

-25%

1%

Normal

0.35

15%

9%

Boom

0.50

38%

14%

Suppose you have $10,000 total. If you put $8,000 in Stock A and the remainder in Stock B, what will be the expected return on your portfolio?

a.

11.94%

b.

18.46%

c.

16.45%

d.

14.38%

2 points

QUESTION 44

What will be the standard deviation on your portfolio?

a.

11.42%

b.

18.33%

c.

14.36%

d.

16.01%

Question no 45

You wish to retire in 27 years, at which time you want to have accumulated enough money to receive an annuity of $23,000 for 20 years after retirement. During the period before retirement you can earn 9% annually, while after retirement you can earn 5% on your money. What annual contributions to the retirement fund will allow you to receive the $23,000 annuity?

a.

$2,987.14

b.

$2,535.91

c.

$2,380.23

d.

$2,790.32

QUESTION 47

The spot rate between Swiss and the U.S. is SF2.1 = $1, while the 1-year forward rate is SF1.9 = $1. The risk-free rate in Swiss is 4%. The risk-free rate in the U.S. is 6%. How much profit can you earn on a loan of $5,000 by utilizing covered interest arbitrage?

a.

$348.41

b.

$83.26

c.

$61.58

d.

$447.37

QUESTION 49

Suppose in New York, the Japanese yen exchange rate is 104 = $1, and the British pound exchange rate is 1 = $1.69. In London, 1 costs 179. How much profit can you earn on $3,400 using triangle arbitrage?

a.

$145.54

b.

$74.25

c.

$62.68

d.

$130.56

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