Question 1

What is the future value of $1,400, placed in a saving account for four years if the account pays 7%, compounded quarterly? (Your answer should be correct to two decimal places.)

Question 3

If you were to borrow $10,000 over five years at 0.11 compounded monthly, what would be your monthly payment?

Question 4

Your uncle promises to give you $600 per quarter for the next five years. How much is his promise worth right now if the interest rate is 0.10 compounded quarterly?

Question 5

A stock has an expected return of 0.10 and a variance of 0.22. What is Its coefficient of

variation?

Question 6

Use the following information to calculate your company?s expected return.

State Probability Return

Boom 20 percent 0.14 percent

Normal 60 percent 0.14 percent

Recession 20 percent -0.19 percent

Question 7

You have invested in stocks J and M. From the following information, determine the beta for your portfolio.

Expected return Amount of Investment Beta

Stock J 0.08 100 000 1.17

Stock M 0.10 300 000 0.60

Question 8

You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent in

Bella Co., and 30 percent in Edward Resources. What is the expected return of

your portfolio if Jacob, Bella, and Edward have expected returns of 0.08, 0.11, and 0.01, respectfully?

Question 9

The covariance of the returns between Willow Stock and Sky Diamond Stock is

0.0770. The variance of Willow is 0.1890, and the variance of Sky Diamond is

0.1150. What is the correlation coefficient between the returns of the two

stocks?

Question 11

Christopher Electronics bought new machinery for $5,015,000 million. This is expected to result in additional cash flows of $1,215,000 million over the next 7 years. What is the payback period for this project? Their acceptance period is five years.

Question 12

AMP, Inc., has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover costs. The company anticipates cash flows of $430,386, $512,755, $764,997, $816,500, and $825,375 over the next six years. What is the payback period?

Question 1 What is the future value of $1,400, placed in a saving account for four years if the account pays 7%, compounded quarterly? (Your answer should be correct to two decimal places.) Question 3 If you were to borrow $10,000 over five years at 0.11 compounded monthly, what would be your monthly payment? Question 4 Your uncle promises to give you $600 per quarter for the next five years. How much is his promise worth right now if the interest rate is 0.10 compounded quarterly? Question 5 A stock has an expected return of 0.10 and a variance of 0.22. What is Its coefficient of variation? Question 6 Use the following information to calculate your company's expected return. State Probability Return Boom 20 percent 0.14 percent Normal 60 percent 0.14 percent Recession 20 percent -0.19 percent Question 7 You have invested in stocks J and M. From the following information, determine the beta for your portfolio. Expected return Amount of Investment Beta Stock J Stock M 0.08 0.10 100 000 300 000 1.17 0.60 Question 8 You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent in Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella, and Edward have expected returns of 0.08, 0.11, and 0.01, respectfully? Question 9 The covariance of the returns between Willow Stock and Sky Diamond Stock is 0.0770. The variance of Willow is 0.1890, and the variance of Sky Diamond is 0.1150. What is the correlation coefficient between the returns of the two stocks? Question 11 Christopher Electronics bought new machinery for $5,015,000 million. This is expected to result in additional cash flows of $1,215,000 million over the next 7 years. What is the payback period for this project? Their acceptance period is five years. Question 12 AMP, Inc., has invested $2,165,800 on equipment. The firm uses payback period criteria of not accepting any project that takes more than four years to recover costs. The company anticipates cash flows of $430,386, $512,755, $764,997, $816,500, and $825,375 over the next six years. What is the payback period