Question
Whats the future value of the initial $2,000 deposit after 5 years? We assume current annual interest rate is 6%, compounded monthly. $2,698 $2,933 $3,086
Whats the future value of the initial $2,000 deposit after 5 years? We assume current annual interest rate is 6%, compounded monthly.
$2,698 | ||
$2,933 | ||
$3,086 | ||
$3,633 |
Whats the present value of $2,000 due in 5 years? We assume current interest rate is 6%, compounded monthly.
$1,229 | ||
$1,101 | ||
$1,322 | ||
$1,483 |
A stock has the following probability distribution: If economy is good (the probability is 0.2), its expected stock return is 25%; if economy is on average (the probability is 0.6), its expected stock return is 8%; if economy is bad (the probability is 0.2), its expected return is -15%. Find the expected rate of return for the stock
5.2% | ||
6.0% | ||
6.8% | ||
8.5% |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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