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Which one of the following affirmations is false?

a.CAGR is computed by means of geometric average

b. the nominal profit of a financial investment does not involve opportunity cost

c. a t-bill is a rather safe investment alternative

d.geometric average is based on the compounding (interest) rate principle

e. given the same HPR, effective annual rate is always smaller than annual percentage rate



How much should you deposit today in a deposit that pays monthly compounded interest, if the final value of the deposit will be 70 000 $, in 12 years time, and the APR is 2%?

a. 35 783 $

b. 54 812 $

c. 49 472 $

d. 67 529 $

e. 32 567 $


What is the present value of a perpetual flow of constant payments of 1 550 currency units, for an individual investor, if the average perpetual expected interest rate is assumed 4.5%?


a. 34 343.43

b. 34 444.44

c. 43 444.44

d. 43 434.34

e. 43 333.33


An investor evaluates the present value of a perpetual flow of constant payments of 1 550 currency units at 35 000 currency units. Which is the average perpetual expected interest rate, considered in this valuation?:


a. 3.44%

b. 4.43%

c. 4.34%

d. 3.34%

e. 3.77%


A deposit of 400 € will be worth 750 € in 5 years time. The yearly inflation rate is estimated at 1%. The compounded annual interest rate is: " with steps"

a.12.8%

b.18.3%

c.11.6%

d.13.4%

e.15.2%


A mutual fund might produce 5% return, with 40% probability, and 4% return, with 60% probability. Thus the standard deviation of this asset is: " with steps"

 

a.1.67%

b.0.49%

c.0.34%

d.0.65%

e.0.23%


A deposit of 1 000 $ works with an interest rate of 3%. The deposit's amount, in 2 years time, will be 1 061 $. The total interest earned from this financial placement and the interest earned after one year, are: " with steps"

a.20 $ and 61 $

b. 31 $ and 60 $

c. 61 $ and 30 $

d. 50 $ and 20 $

e. 30 $ and 60 $


One of the following statements is true:


a. the NPVinvest is a sum of future values

b. a rational investor seeks a higher risk to return ratio from all investment alternatives

c. the lowest risk on the financial market is characteristic to state bonds

d. deposits are usually inflated by the central bank

e. normal probability distribution is common on the US stock exchange


A deposit of 1 000 $ works with an interest rate of 3%. The deposit's amount, in 2 years time, will be 1 061 $. The total interest earned from this financial placement and the interest earned after one year, are: " with steps"

a.61 $ and 30 $

b.31 $ and 60 $

c.20 $ and 61 $

d.50 $ and 20 $

e.30 $ and 60 $



A mutual fund might produce 5% return, with 40% probability, and 4% return, with 60% probability. Thus the standard deviation of this asset is: " with steps "

a. 0.23%

b. 1.67%

C. 0.65%

d. 0.49%

e. 0.34%


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