Jeannie plans to deposit $6,000 in a money market sinking fund at the end of each year for the next four years. What is the amou
nt that will accumulate by the end of the fourth and final payment if the sinking fund earns 9% interest? (FV of $1, PV of $1, FVA of $1,PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to the nearest whole dollar amount.) Which of the following statements about annuities are true?
A. The first cash flow of an annuity due is made on the first day of the agreement.
B. The first cash flow of an annuity due is made on the first day of the agreement.
C. The first cash flow of an ordinary annuity is made on the first day of the agreement.
D. The first cash flow of an ordinary annuity is made on the first day of the agreement.
E. The last cash flow of an annuity due is made on the day covered by the agreement.
F. The last cash flow of an annuity due is made on the day covered by the agreement.
G. The last cash flow of an ordinary annuity is made on the last day covered by the agreement.
H. The last cash flow of an ordinary annuity is made on the last day covered by the agreement.
The sales era (1920s - 1950s) was a time where manufacturers started to emphasize on effective sales forces and effective sales techniques because of increasing competition and increasing output levels. The goal of sales management was to find enough consumers for the company's total output.
Answer: The correct answer is "B. may be less than the variance of the least risky stock in the portfolio.".
Explanation: If a stock portfolio is well diversified, then the portfolio variance may be less than the variance of the least risky stock in the portfolio.
This occurs because diversifying the risk results in a lower risk in the total portfolio.
