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Free_Kalibri [48]
3 years ago
5

Which of the following investments would have the lowest present value? Assume that the effective annual rate for all investment

s is the same and is greater than zero. Group of answer choices Investment E pays $250 at the beginning of every year for the next 10 years (a total of 10 payments). Investment B pays $125 at the end of every 6-month period for the next 10 years (a total of 20 payments). Investment A pays $250 at the end of every year for the next 10 years (a total of 10 payments). Investment D pays $2,500 at the end of 10 years (just one payment). Investment C pays $125 at the beginning of every 6-month period for the next 10 years (a total of 20 payments).
Business
1 answer:
nekit [7.7K]3 years ago
5 0

Answer:

Investment D would have the lowest present value

Explanation:

A is smaller compared to E, This is because the money comes in later

The same argument holds for B and C, that is, B is lower compared to C because the money comes in later too.

A is also lower than B, this is because  of the annuity to be received later is larger.

D is just one payment, which means D is the right answer compared to A

This means investment D would have the lowest present value compared to all other investment choices.

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3 years ago
Investment interest expense includes:interest expense from loans to purchase municipal bonds and interest expense from loans to
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Investment interest expense includes interest expense from loans to purchase municipal bonds.

<h3>What is Investment?</h3>

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Income investing is an investment strategy that focuses on constructing an investment portfolio that is specifically designed to generate regular income. The income investing strategy's sole goal is to generate a consistent stream of income.

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8 0
2 years ago
You are creating a portfolio of two stocks. The first one has a standard deviation of 20% and the second one has a standard devi
Drupady [299]

Answer:

23.56

Explanation:

Standard deviation of  the first stock (σ1) = 20%

Standard deviation of  the second stock (σ2) = 37%

The correlation coefficient between the returns (ρ) = 0.1.

Proportion invested in the first stock (W1) = 43%

Proportion invested in the second stock (W2) = 57%

The standard deviation of a two-stock portfolio's returns is given by

\sigma_{portfolio} = \sqrt{w_1^2\sigma_1^2+w_2^2\sigma_2^2+2w_1w_2\rho\sigma_1\sigma_2} \\\sigma_{portfolio} = \sqrt{0.43^2*0.2^2+0.57^2*0.37^2+2*0.43*0.57*0.1*0.2*0.37}\\\sigma_{portfolio} =0.2356=23.56\%

The standard deviation of this portfolio's returns IS 23.56%

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4 years ago
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Answer: expenses to be understated

Explanation:

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2 years ago
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Answer:

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A white space is not marked, white space is very important so that a work does not look congested. white spaces improves readability because if their are no white spaces in between sentences or breaking paragraphs into shorter chunks, it becomes very difficult to read.

By chunking a paragraph means to break it down into smaller parts. a paragraph can be chunked into sentence and phrases. Paragraphed can be broken into smaller parts to improve readability.

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