Answer:
Absorb water means to suck up or drink in.
Answer:
$40,000
Explanation:
If Alan had paid the disability insurance himself, then disability income would not be taxable. But since Alan's employer paid the disability insurance premiums, then any disability payments that Alan received must be included in his gross income and are taxable.
Answer:
(a) 6.206%
(b) 6.54%
(c) 6.58%
Explanation:
Given that,
Commercial paper value = $3 million
Currently selling at 97.50 percent of its face value.
Days from maturity = 145
(a) Discount yield:
= 
= 
= 0.025 × 2.4827
= 0.06206 or 6.206%
(b) Bond equivalent yield:
= 
= 
= 0.026 × 2.52
= 0.0654 or 6.54%
(c) Effective annual return:
Future value = Present value × 
$100 = $97.50 × 
1.0658 = 1 + r
0.0658 or 6.58% = r
Answer:
D. The two assets have the same coefficient of variation.
Explanation:
the coefficient of variation = standard deviation / mean
- the coefficient of variation of the stock = 20% / 12% = 1.67
- the coefficient of variation of the treasury bonds = 15% / 9% = 1.67
As a general, the lower the coefficient of variation, the more exact is the estimated return.
Answer:
Option D is the correct answer
Explanation:
Investors are typically expected to part with their funds today in expectation for a future amount,hence the funds so invested are invested for speculative reasons.
Owners are given the option of future payments at redemption of the investments while some investments can be divested before maturity.
Future payments are naturally risky because investment is like two sides of a coin, it either has a positive or negative outcome such loss of the entire invested sum.
Not all investments pay positive rate of interest, the US bank deposit interest was negative during the global meltdown in 2009.
