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
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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