Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve this asap You should attempt all the questions. MCQs carries 15 marks and Short answers question carries 85 marks. Section 1 MCQs (Answer

please solve this asap
image text in transcribed
You should attempt all the questions. MCQs carries 15 marks and Short answers question carries 85 marks. Section 1 MCQs (Answer all the questions). Each MCQ carries 3 marks. Question 1 You are evaluating three investment schemes: X, Y and Z respectively. If the interest rate is 12% a year, which one of the following cash-inflow streams would give you highest present value at Year? Choice/Year Year 0 Yearl T2 T2 X $700 $500 $300 Y $300 $500 $700 Z $500 $500 $500 a) z b) X c) Y d) All the streams of cash-inflows will you give equal present value since each investment offers a total of 1500 cash-inflow Question 2 The risk is closely defined as a) The potential variability in the future cash flow b) The chances that an investment value or return will be less it's expected value c) It has potentially more than one outcome d) All of the above answers are correct Question 3 Diversification is most effective if the a) Correlation coefficient between two asset is the highest b) Correlation coefficient between two asset is zero c) Correlation coefficient between two assets is negative d) None of the above answers are correct

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction To Institutions Management And Investments

Authors: Herbert Mayo

10th International Edition

1111820643, 9781111820640

More Books

Students also viewed these Finance questions