Answer:
FV=$885,185.11
Explanation:
Giving the following information:
Annual deposit (A)= $2,000
Interest rate (i)= 10%
Number of periods (n)= 40 years
<u>To calculate the future value (FV) of the investment, we need to use the following formula:</u>
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,000*[(1.1^40) - 1]} / 0.1
FV=$885,185.11
Answer:
Expected Return =
Recession = ( 20/100)* 20% = 4%
Steady = (40/100)*10% = 4%
Boom = ( 40/100) * 35% =<u> 14%</u>
Expected Return = <u> 22%</u>
there is no answer in the option. The correct answer is 22%.
Explanation:
Expected return of share is the summation of probability multiply by the return expected in a situation of the economy.
Answer:
B) The stock market exhibits informational efficiency.
Explanation:
There are 2 identifiable ways to manage a portfolio. Active management is explained by Musashi way of investing in which she thinks there may be opportunities that can be exploited by a portfolio manager and she is willing to pay a fee in order to benefit from those opportunities. On the other hand, Rina thinks that markets are efficient and there is no incentive to pay extra, this is called Passive investing. Passive investing usually tracks an index and it is rebalance periodically according to previously known rules.
Answer:
Accelerated depreciation method
Explanation:
Accelerated depreciation is a method of depreciation in which the assets lost his purchase price or book value at the speedy rate as compared with the straight-line method.
And it generates a larger amount of expenses during the early period and the smaller amount of expenses in the later year so that it can be decreased the taxable income