Answer:
You can't tell the difference between a legit article and an ad
Explanation:
Answer:
The slope of the CML = (13% - 7%)/25% = 0.24
Explanation:
Given that:
expected rate of return of 17%
standard deviation of 27%.
The T-bill rate is 7%.
You estimate that a passive portfolio invested to mimic the S&P 500 stock index yields an expected rate of return of 13% with a standard deviation of 25%.
The slope of the CML is
Slope of the CML = (Expected return of Market - Risk free return)/Standard deviation of market
The slope of the CML = (13% - 7%)/25% = 0.24
= (0.13 - 0.07) /0.25
= 0.24
Answer:
b. to reduce deposits
Explanation:
A Capital requirement refers to the amount of capital that a financial institution must have to meet the requirements set by it's financial regulator. All of the answers provided are purposes that this hopes to accomplish except for reducing deposits. It actually hopes to increase deposits which means more customers that are coming in.
Answer:
a) Zero coupon bond does not pay periodical interest and formula to compute the value of a zero-coupon bond:
Value = Face Value / (1 +Yield / 2) ** Years to Maturity * 2
b) Interest deduction
After 1 year bond value from the above equation is 437.08
437.08 - 411.99 = 25.09
In the 14th year bond value from the above equation is 942.60
1000 - 942.60 = 57.40
c) Straight Line Method
Total Interest Paid = 1000 - 411.99
= 588.01
For yearly calculation
588.01 / 15 = 39.21
Further computation is done in the image below.
Answer:
Your answer is that she needs to earn $148 on Friday
Explanation:
Calculate Average:
(67 + 82 + 78) / 4 = 56.75 (Remember 67 is worth Monday and Tuesday)
We know that the number that the 4 numbers add up to has to be divisible by 5 because our we need to average 75 and we have 5 days to average on.
5 x 75 = 375
67 + 82 + 78 = 227
375 - 227 = 148
(67+82+78+148) / 5 = 75
Your answer is that she needs to earn $148 on Friday