This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Weston Inc. just agreed to pay 8,000 today, 10,000 in one year, and 15,000 in two years to a ... (Read 40 times)

Marty

  • Hero Member
  • *****
  • Posts: 553
on: Jul 10, 2018
Weston Inc. just agreed to pay 8,000 today, 10,000 in one year, and 15,000 in two years to a landowner to explore for, but not extract, valuable minerals.
 
  If the landowner invests the money at a rate of 5.5 compounded annually, what is the investment worth two years from today?
  What will be an ideal response?

Question 2

You have decided to create a portfolio with two assets: stock X and stock Y. You invest 20 of your funds in X and 80 of your funds in stock Y. The standard deviation of X is 30 and the standard deviation of Y is 40.
 
  The two stocks have a correlation coefficient of - 0.5. What is the portfolio's standard deviation?
  A) 30.00
  B) 29.46
  C) 33.24
  D) 36.92
  E) 40.00


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Pamela.irrgang@yahoo.com

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: FV = (PV  (1 + r)n) = 8,000  (1.055)2 + 10,000  (1.055)1 + 15,000  (1.055)0 = 34,454.20.

Answer to Question 2

B


Marty

  • Member
  • Posts: 553
Reply 2 on: Jul 10, 2018
Gracias!

amit

  • Member
  • Posts: 364
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

For high blood pressure (hypertension), a new class of drug, called a vasopeptidase blocker (inhibitor), has been developed. It decreases blood pressure by simultaneously dilating the peripheral arteries and increasing the body's loss of salt.

Did you know?

Pregnant women usually experience a heightened sense of smell beginning late in the first trimester. Some experts call this the body's way of protecting a pregnant woman from foods that are unsafe for the fetus.

Did you know?

As of mid-2016, 18.2 million people were receiving advanced retroviral therapy (ART) worldwide. This represents between 43–50% of the 34–39.8 million people living with HIV.

Did you know?

Walt Disney helped combat malaria by making an animated film in 1943 called The Winged Scourge. This short film starred the seven dwarfs and taught children that mosquitos transmit malaria, which is a very bad disease. It advocated the killing of mosquitos to stop the disease.

Did you know?

The first documented use of surgical anesthesia in the United States was in Connecticut in 1844.

Adolescence: 12 years or puberty to the beginning of adulthood. Adolescence: 12 years or puberty to the beginning of adulthood.
Hospitalization per year Hospitalization per year
In Canada, 2/3 women and over 1/2 of men 55 to 64 years of age are grandparents In Canada, 2/3 women and over 1/2 of men 55 to 64 years of age are grandparents
A pedigree for albinism collected in the early years of the twentieth century by Charles Davenport, A pedigree for albinism collected in the early years of the twentieth century by Charles Davenport,
Chinese new year 2023 Chinese new year 2023
No payments were made on a $2,598 loan during its three-year term. What was the annually ... No payments were made on a $2,598 loan during its three-year term. What was the annually ...
Video: Activation Energy - Valence Electrons

For a complete list of videos, visit our video library