Answer:
D
Explanation:
The remaining balance on a 20-year 5/1 ARM at 3.5% interest with a 2/7 cap structure after 5 years will be $377,238.57.
Pro life tip: Do NOT finance your home with an ARM mortgage.
Good luck in your studies!
<u>Solution and Explanation:</u>
As the utility function is concave in shape, so person is risk averse. Thus, he will not accept the gamvle.
The difference between utility at point A&C = 70 minus 65 = $5, is less than a the difference between A&B = 65 minus 55 = $10
<u>MCQ:
</u>
Answer is option a&d - risk averse people fear a lot for losing money, thus they overestimate the probability of loss
Since, shape of utility function is concave, hence the double derivative of utility with respect to wealth is negative, so utility falls at an decreasing rate , as wealth increases
Hello! The answer would be D. $3,741. I hope this helps!
Answer: Control process
Explanation:
The control process of the management is one of the concept that helps in measuring, planning, organizing and also implementing the various types of functions in an organization.
The main objective of the control process in the management is that it helps in achieving the organizational goals and handle all the activities of the business such as production and the packaging process.
According to the given question, the control process of the management basically helps in monitoring the various types of performance of the products in an organization and also checking the errors for the purpose of resolving them.
Therefore, Control process is the correct answer.
Answer:
$26.25
11.72%
Explanation:
Stock price next year = current price x ( 1 + growth rate)
$25 x (1.05) = $26.25
According to the constant growth dividend growth model :
P = D1 / ( r - g)
P = price of the stock
D1 = next dividend = current dividend x (1 +growth rate)
r = required rate of return
g = growth rate
$25 = $1.60 x ( 1.05) / r - 0.05
$25 = 1.68 / r - 0.05
$25 x ( r - 0.05) = 1.68
r = 0.1172
r = 11.72%