Question
Please please solve this within 30 minutes.. I have less time left.. Question No 1 (a) .Suppose a person is investing $8,000 in Stock A
Please please solve this within 30 minutes.. I have less time left.. Question No 1 (a) .Suppose a person is investing $8,000 in Stock A and $24,000 in Stock B. Stock A and B have standard deviations of 5% and 9%, respectively. The correlation coefficient between these two securities is 0.75. What is the standard deviation of the portfolio?
77.32%
8.001%
7.732%
6%
(b) .Suppose a person is investing $8,000 in Stock A and $24,000 in Stock B. Stock A and B have expected returns of 10% and 25%, respectively. The correlation coefficient between these two securities is 0.75. What is the expected return of the portfolio?
21.25%
15.94%
13.78%
25%
(c) The maturity value of a bond is $2,000. The bond has a life of 10 years. The discount rate is 8%. What is the market value of the bond?Single choice.
(2 Points)
$1,146.6
$13,420
$1,160
$926.4
(d) Find the future value of an annuity of $2,500 per year, at the end of year 10, if investor can earn 10% annual interest.Single choice.
(2 Points)
35,000 approx.
39,842 approx.
25,777 approx.
49,248 approx.
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