Answer:
C. inefficiences may be concealed in the past performance.
Explanation:
A major drawback of using historical results for judging current performance is that inefficiences may be concealed in the past performance.
Answer: 8.92%
Explanation:
The interest rate that would make Randy indifferent is the one that will discount the twenty payments of $325,000 to $3,500,000 today.
Use Excel's Rate function to find this rate;
=RATE (No of periods, annual payments, present value, future value, Annuity due = 1)
=RATE(20,350000,-3500000,0,1)
= 8.92%
Answer:
$13,241
Explanation:
From the data we were given in the question:
future value = fv = $1,500,000
time = t = 30 year
rate = r = 8%
We are required to find out How much does he need to invest to achieve his goal
solution
future value = principal ( 1+ rate)^(t-1) / rate
1500000 = principal (1 + .08)^(30-1)/ 0.08
we make principal, p, subject of the formula.
principal = 1500000 / ( (1 + .08)^(30-1)/ 0.08 )
Principal = 1,500,000 / 113.2832
principal = 13241.15
so Dan needs to invest $13241
Answer:
Using different types of market segmentation allows you to target customers based on unique characteristics, create more effective marketing campaigns, and find opportunities in your market.
Answer and Explanation:
The computation of the expected rate of return and the standard deviation is shown below;
The Expected Rate of Return is
= Weighted × expected rate of return + weighted × t-bill rate
= 0.60 × 20 + 0.40 × 5
= 14%
And,
The Standard Deviation is
= Weighted × standard deviation + weighted × 0
= 0.60 × 36 + 0.40 × 0
= 21.60%