Author Question: Dottie has decided to set up an account that will pay her granddaughter (Lexi) 5,000 a year ... (Read 208 times)

berenicecastro · **on:** Jul 10, 2018

Dottie has decided to set up an account that will pay her granddaughter (Lexi) 5,000 a year indefinitely. How much should Dottie deposit in an account paying 8 percent annual interest?

What will be an ideal response?

Question 2

Combining two assets having perfectly positively correlated returns will result in the creation of a portfolio with an overall risk that ________.

A) remains unchanged
B) decreases to a level below that of either asset
C) increases to a level above that of either asset
D) lies between the asset with the higher risk and the asset with the lower risk