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Use the following table to calculate the expected return for an individual stock. Return Probability 0.1 0.25 0.2 0.5 0.25 0.25 Group of answer choices
Use the following table to calculate the expected return for an individual stock.
Return | Probability |
0.1 | 0.25 |
0.2 | 0.5 |
0.25 | 0.25 |
Group of answer choices
15%
18.75%
20%
17.5%
Consider a bond with a BBB rating. Is it a
Group of answer choices
Investment grade bond
High-yield bond
Neither
Both
Flag question: Question 5
Question 52.5 pts
A university department is considering setting up a scholarship of $15,000, increasing each year at the rate of inflation. The plan is to grant it to a deserving student every year in perpetuity. What is the amount of money the department needs to invest today to be able to do this? The rate of return is 8%, and the expected inflation is 2%.
Group of answer choices
$187,500
$250,000
$750,000
None of these
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