John dropped out of school after the ninth grade and now must support himself though he has few skills. he is a part-time employ
1 answer:
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Answer:
13.85% and 18.9%
Explanation:
As in this exercise we have a free risk asset we will assume that the t-bill has a standard deviation of 0%, so let´s firts calculate the expected return:
where E(r) is the expected return, is the return of the i asset and
is the investment in i asset, so applying to this particular case we have:
the calculation of standar deviation follows the same logic of the previous formula:
Answer:
8448.22
Explanation:
We are asked to calculate the present value of 20,000 in ten years.
<em>Resuming: </em>in this kind of problems we are asked for which lump sum becomes a certain amount in a given period of time at an annual rate