Which one of the following is FALSE?

Select one:

a.If interest rates are the same, more frequent compounding is favourable for investors but not good for borrowers.

b.Financial institutions and financial markets play a role of channelling money from deficit units to surplus units.

c.A dollar today is worth more than a dollar tomorrow.

d.When compounding occurs once per year, EAR should be equal to APR.

Clear my choice

Question23

A portfolio comprises Cochlear (beta of 1.3) and Westpac (beta of 0.8). The amount invested in Cochlear is $20,000 and in Westpac is $200,000. What is the beta of the portfolio?

Select one:

a.0.99

b.1.05

c.0.85

d.1.14

Clear my choice

Question24

An investment pays you $20,000 at the end of this year, and $10,000 at the end of each of the four following years. What is the present value of this investment, given that the interest rate is 3% per year?

Select one:

a.$54,133.61

b.$51,557.60

c.$55,505.81

d.$52,818.58