First, we calculate for the effective annual interest given the interest in the scenario.
ieff = (1 + i/m)^m - 1
Substituting the values,
ieff = (1 + 0.04/12)^12 - 1 = 0.0407
The effective interest is equal to 4.07%.
The future amount after 2 years,
F = ($6000) x (1.0407)^2 = $6498.86
The house will most likely go to her Nephew.
Answer:
the new portfolio beta is 1.11
Explanation:
The computation of the new portfolio beta is as follows;
The Beta of the new portfolio is
= (Portfolio beta × given percenatge) + (beta of the stock × given percentage)
= (1.16 × 0.9) + (0.69 × 0.1)
= 1.11
hence, the new portfolio beta is 1.11
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Matthew will evaluate the alternative using a series of questions.
<h3>
What are the ethics of marketing?</h3>
Fairness and honesty are encouraged by marketing ethics in all of their advertisements.
Any false statements made to clients, invasion of their privacy, use of stereotypes, and targeting of the weaker demographic (such as youngsters and the elderly) are all considered unethical. Even attempting to harm a competitor's reputation is regarded as immoral.
Ethics in marketing is essential to ethical decision-making for a product or service to have the best possible presence in its specialized market.
Learn more about marketing ethics here:
brainly.com/question/3949916
#SPJ4
Answer:
Explanation:
arithmetic average growth rate = {[(1.33 - 1.25)/1.25] + [(1.40 - 1.33)/1.33] + [(1.51 - 1.40)/1.40] + [(1.59 - 1.51)/1.51]} / 4 = {0.064 + 0.053 + 0.079 + 0.053} / 4 = 0.06225 x 100 = 6.225%
geometric growth rate = ⁴√{0.064 x 0.053 x 0.079 x 0.053} = 0.061%
a) using arithmetic average growth rate
Div₁ = $1.59 x 1.06225 = $1.689
P₀ = $40
g = 6.225%
40 = 1.689 / (Re - 0.06225)
Re - 0.06225 = 1.689 / 40 = 0.04222
Re = 0.04222 + 0.06225 = 0.10447 = 10.45%
b) using geometric average growth rate
Div₁ = $1.59 x 1.061 = $1.68699
P₀ = $40
g = 0.061%
40 = 1.68699 / (Re - 0.061)
Re - 0.061 = 1.68699 / 40 = 0.04217
Re = 0.04217 + 0.061 = 0.103174 = 10.32%
