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How would the supple of oil change giving improvements in drilling equipment?
You place $25,000 in a savings account paying annual compound interest of 8% for three years and then move it into a savings account that pays 10% interest compounded annually. How much will your money have grown at the end of six years?
Q3. Jamie Wong is considering building an investment portfolio containing two stocks, L and M. Stock L will represent 40% of the dollar value of the portfolio, and stock M will account for the other 60%. The expected returns over the next 6 years, 2013–2018, for each of these stocks are shown in the following table.
a. Calculate the expected portfolio return, rp, for each of the 6 years.
b. Calculate the expected value of portfolio returns, , over the 6-year period.
c. Calculate the standard deviation of expected portfolio returns, over the 6-year period.
d. How would you characterize the correlation of returns of the two stocks L and M?
e. Discuss any benefits of diversification achieved by Jamie through creation of the portfolio.
a) Briefly describe the following techniques for managing inventory: ABC system, economic order quantity (EOQ) model, just-in-time (JIT) system.
) Harte Systems, Inc., a maker of electronic surveillance equipment, is considering selling to a well-known hardware chain the rights to market its home security system. The proposed deal calls for the hardware chain to pay Harte $30,000 and $25,000 at the end of years 1 and 2 and to make annual year-end payments of $15,000 in years 3 through 9. A final payment to Harte of $10,000 would be due at the end of year 10.
i. Lay out the cash flows involved in the offer on a time line.
ii. If Harte applies a required rate of return of 12% to them, what is the present value of this series of payments?
iii. A second company has offered Harte an immediate one-time payment of $100,000 for the rights to market the home security system. Which offer should Harte accept?
Write a detailed note on the economic performance of Pakistan economy in the last Fiscal year. Highlight the Sector in which the economy performed good and also highlight sectors which have not performed good.
QUESTION ONE
Bank A
ASSETS
Notes and Coins 69
Balances with Bank of Zambia 30
Balance with Banks and other financial institutions in Zambia 0
Balance with Banks and other financial institutions abroad 24
Investments in securities 22
Loans and advances 57
Fixed Asset 78
Other Assets 17
Total Assets 297
Deposits 50
Balances due to Banks and other financial institutions in Zambia 88
Balances due to Banks and other financial institutions abroad 14
Other liabilities 58
Bills of Exchange 0
Other borrowed funds (including Subordinated Debt) 71
Shareholders’ equity 35
Total Liabilities 316
Off Balance Sheet items
Contingent liabilities
Assets pledged as collateral other than a house
Allowance for losses on acceptances and off balance sheet items in other liabilities
Calculate for Banks A: Total Primary Capital, Total Secondary Capital, Eligible Total Capital, current Minimum Total Capital Requirements, and Capital Excess or Deficiency assuming:
a).a foreign majority owned bank b). a Zambian majority owned bank.
This is a question about interest rates. How do I know when to use a period rate rather than an effective annual rate.
Question: A perpetuity pays 40$ per year to infinity.Considering a required rate of return of 10% APR, compounded semi-annually, what is the present value of thr perpetuity. To compute the anwser the apr is converted to EAR.
In which situations would we convert it to a periodic rate. Or do we always convert the APR to an EAR?
Compounding frequency, time value, and effective annual rates For each of the cases in the following table:
- Calculate the future value at the end of the specified deposit period.
- Determine the effective annual rate, EAR.
- Compare the nominal annual rate, r, to the effective annual rate, EAR. What relationship exists between compounding frequency and the nominal and effec- tive annual rates?
Compounding frequency, time value, and effective annual rates For each of the cases in the following table:
- Calculate the future value at the end of the specified deposit period.
- Determine the effective annual rate, EAR.
- Compare the nominal annual rate, r, to the effective annual rate, EAR. What relationship exists between compounding frequency and the nominal and effec- tive annual rates?
