Answer:
13.86%
Explanation:
34% was invested into stock X with an expected return of 11%
22% was invested into stock Y with an expected return of 18%
44% was invested into stock Z with an expected return of 14%
The expected return on the portfolio can be calculated using the formula below
Expected return= Sum of ( weight of stock×return of stock)
= (0.34×11%)+(0.22×18%)+(0.44×14%)
= 3.74+3.96+6.16
= 13.86%
Hence the expected return on the portfolio is 13.86%
Answer:
The answer is:D) $226.78
Explanation:
To calculate the amount of money your grandfather deposited every 3 months during 52 years to get $289,209.11 we can use an excel spreadsheet and the payment function =PMT(rate,nper,pv,fv)
where:
- rate = 5.73% / 4 = 1.4325%
- nper = 52 x 4 = 208
- pv = 0
- fv = 289,209.11
PMT = $226.78
The answer is A sounds we make without forming words
Answer:
Annuity per period (A) = $2,500
Interest rate (r) = 5.5% = 0.055
Number of years (n) = 3 years
Present value (PV) = ?
The amount to be paid for the annuity
PV = A<u>(1 + r)</u>n - 1
r
PV = $2,500<u>(1 + 0.055)</u>3 - 1
0.055
PV = $2,500<u>(1.055)3 - 1</u>
0.055
PV = $2,500<u>(1.174241375 - 1)</u>
0.055
PV = $2,500 x 3.168025
PV = $7,920.06
Explanation:
The present value of an annuity equals annuity per period multiplied by present value of annuity factor at 5.5% for 3 years. In this case, the annuity per period, interest rate and number of years were provided in the question with the exception of present value. The present value becomes the subject of the formula.
