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Bogdan [553]
3 years ago
15

Over a 20-year period an investment of $1,000 in common stocks returned an average of 11% in nominal terms and 4% in real terms.

At the end of the 20 years, the portfolio value was:________
a. $3,679.19 in real terms.
b. $1,800 in real terms.
c. $8,062.31 in nominal terms.
d. $7,870.59 in nominal terms.
Business
1 answer:
Travka [436]3 years ago
6 0

Answer:

c. $8,062.31 in nominal terms.

Explanation:

The portfolio value required which is at the end of 20 years is the future value of the amount invested initially($1000) , compounded at the nominal rate of return 11% per year as shown below:

FV=PV*(1+nominal interest rate)^n

PV=present value=initial invested=$1000

nominal interest rate=11%

n=time horizon of the investment=20 years

FV=$1000*(1+11%)^20= 8,062.31  

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To _____ is to modify or improve upon code.
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2 years ago
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In the field of quality control, the science of statistics is often used to determine if a process is "out of control". Suppose
devlian [24]

Answer:

probability = 0.008

probability = 0.0256

Explanation:

we know here probability of defective is 0.2

so probability of not defective is 1 - 0.2 = 0.8

as we know 3 item is arrive off process line in succession

so The probability that an item is defective is

as P(defective) = 0.20

as all item are independent so

probability that all three items are defective is

probability = 0.20  × 0.20  × 0.20 = 0.008

and

probability that exactly 3 of next 4 are defective

so number of way that can choose 3 out of 4 is

= \frac{4!}{3! ( 4-3)!}

= 4

so as all are independent probability is

probability = ( the number of way to choose 3 out of 4 ) × ( 3 item defective ) × ( 1 item not defective )

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4 0
3 years ago
Below are several amounts reported at the end of the year. Currency located at the company $ 1,050 Supplies 3,200 Short-term inv
blondinia [14]

Answer: $18,460

Explanation:

Amounts that will go towards the cash account at the end of the year include all actual cash, undeposited checks, bank balances and short term investments.

The Total amount of cash to report will therefore be;

= Currency located at the company + Short-term investments that mature within three months + Balance in savings account + Checks received from customers but not yet deposited + Coins located at the company + Balance in checking account

= 1,050+ 1,950 + 8,500 + 650 + 110 + 6,200

= $18,460

5 0
3 years ago
Sand Point Corporation's common stock recently paid a dividend of $1.50. Investors require a 16% rate of return on this stock. S
Nikolay [14]

Answer: $42

Explanation:

Value can be found using the Gordon Growth model;

= (Current dividend * (1 + Growth rate)) / ( required return - growth rate)

Growth rate =  Retention ratio * Return on equity

= 40% * 30%

= 12%

Value = (1.50 * 1.12)/ ( 16% - 12%)

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6 0
2 years ago
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