They are used to measure productivity
Answer: a. The y-axis intercept would decline, and the slope would increase.
Explanation:
The security market line is simply refered to as the graphical representation of a CAPM which is the capital asset pricing model and it simply shows the market risk, of the securities in the market which is then plotted against the market return.
When the expected inflation rate decreases and the investors also become more risk averse, the Security Market Line would be affected, as the y-axis intercept would decline, and the slope would increase.
Answer:
What is the present value of the payments if they are in the form of an ordinary annuity?
Discount all cash flows
12,000/1.09=11,009
12,000/1.09^2=10,100
12,000/1.09^3=9,266
12,000/1.09^4=8,501
12,000/1.09^5=7,799
Add all these discounted cash flows= $46,675 is the present value of ordinary annuity
a-2. What is the present value of the payments if the payments are an annuity due?
In an annuity due payment is made at the beginning of the year so we subtract one from each compounding period so,
12,000/1.09^0=12,000
12,000/1.09=11,009
12,000/1.09^2=10,100
12,000/1.09^3=9,266
12,000/1.09^4=8,501
add all these discounted cash flows = $50,876= PV of annuity due
FV of ordinary annuity
PV= 0
PMT=12,000
I= 9
N= 5
FV=? Put these in financial calculator= $71,816
Fv of annuity due=
12,000+
PV=0
PMT=12,000
I=9
N=4
FV=?=66,877
Pv of annuity due is higher and FV or ordinary annuity is higher.
Explanation:
Answer: True
Explanation:
The statement that It is possible to insure a pet, a body part, and jewelry is true. It should be noted that a standard homeowners policy consist of the coverage for precious items which includes watches, jewelry etc.
Also, it is possible to insure ones pet. People usually insure their dogs and cats. Also, celebrities usually insure their body parts. For example, Rihanna once insure he legs and Mikey Cyrus insure her tongue as well.
The net profit over time and the cost of the investment make up the two metrics that comprise return on investment.
<h3>Return on Investment (ROI): How Is It Calculated?</h3>
Divide the profit from an investment by the investment's cost to get return on investment (ROI). The ROI, or percentage return on investment, for an investment with a profit of $100 and a cost of $100, for instance, would be 1, or 100%. Despite being a quick and simple method to gauge an investment's effectiveness, ROI has some significant drawbacks. The time value of money, for instance, is not taken into account by ROI, and it can be challenging to effectively compare ROIs because certain investments will take longer to turn a return than others.
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