Answer:
B. The portfolio expected rate of return must be the same for each economic state.
Explanation:
Variance formula = sum of (probability x (r - mean)^2)
r= expected return
if the expected return would be same for each economic state then the mean would equal to expected return which ultimately will give variance zero ( as r-mean would be 0).
Hence the correct option is B. The portfolio expected rate of return must be the same for each economic state.
Answer:
True
Explanation:
the process of identifying and defining what actions are required to deliver a project's requirements
Answer: <em>No, since the value of the cash flows over the first two years are less than the initial investment</em>
Explanation:
value of cash flows for the first two years = $48,000 (24,000x2)
Initial Investment = $50000
Because the additional $48,000 profit during the two year payback is not grater than the $50,000 purchase, they should not put the large neon sign up.
Investing money is always good when the stock market is good
General Rule: Daily compounding gives a higher yield
Compounding works like this:
6.025% per quarter
Quarter 1: $100 x 6.025% = $6.025
Quarter 2: $106.025 x 6.025% = $6.388
Quarter 3: $112.413 x 6.025% = $6.7729
Quarter 4: $119.186 x 6.025% = $7.4491
Etc…
6% per day
Day 1: $100 x 6% = $6
Day 2: $106 x 6% = $6.36
...
Day 365: $193.47 x 6% = $11.96
