Question
Please help me to answer this question thanks! If interest rates are positive, the present value of a future lump sum of $100 will be
Please help me to answer this question thanks!
If interest rates are positive, the present value of a future lump sum of $100 will be |
A. less than $100 B. greater than $100 C. equal to $100 D. equal to [$100 x (1 + opportunity cost rate)] E. The answer cannot be determined from the information provided.
A. The periodic rate is greater than 3 percent. B. The periodic rate is less than 3 percent. C. The effective annual rate is less than 6 percent. D. The effective annual rate is greater than 6 percent. E. The effective annual rate is 6 percent. |
A. Generically, financial risk is related to the probability of a return that is less than expected. B. If the returns on two investments move in unison (are perfectly positively correlated), combining the two into a portfolio will lower risk. C. If the returns on two investments move in unison (are perfectly positively correlated), combining the two into a portfolio will not affect risk. D. In the real world, it is not possible to create a riskless portfolio because all investment returns, to a greater or lesser extent, move with the overall economy. E. Assume you know for certain that an investment will return negative 10 percent. (In other words, the probability of a negative 10 percent return is 100 percent.) Although the expected return is negative, the investment is riskless. | |
| |
|
A. The stock's plot falls on the security market line. B. The stock's plot falls below the security market line. C. The stock's plot falls above the security market line. D. The stock's plot falls at the risk-free rate on the y-axis. E. The information provided is insufficient to answer the question. |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started