This topic contains a solution. Click here to go to the answer

Author Question: How does compound interest differ from simple interest? What will be an ideal ... (Read 68 times)

Arii_bell

  • Hero Member
  • *****
  • Posts: 596
How does compound interest differ from simple interest?
 
  What will be an ideal response?

Question 2

You are thinking of adding one of two investments to an already well- diversified portfolio.
 
  Security A Security B
  Expected Return = 14 Expected Return = 16
  Standard Deviation of Standard Deviation of
  Returns = 16 Returns = 20
  Beta = 1.2 Beta = 1.2
  If you are a risk-averse investor, which one is the better choice?
  A) Security A
  B) Security B
  C) Security B, but only if Security B's required return is greater than 12.
  D) Either security would be acceptable because they have the same beta.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

pallen55

  • Sr. Member
  • ****
  • Posts: 331
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly




Arii_bell

  • Member
  • Posts: 596
Reply 2 on: Jul 11, 2018
:D TYSM


Zebsrer

  • Member
  • Posts: 284
Reply 3 on: Yesterday
Great answer, keep it coming :)

 

Did you know?

About 100 new prescription or over-the-counter drugs come into the U.S. market every year.

Did you know?

The top five reasons that children stay home from school are as follows: colds, stomach flu (gastroenteritis), ear infection (otitis media), pink eye (conjunctivitis), and sore throat.

Did you know?

Human stomach acid is strong enough to dissolve small pieces of metal such as razor blades or staples.

Did you know?

Bisphosphonates were first developed in the nineteenth century. They were first investigated for use in disorders of bone metabolism in the 1960s. They are now used clinically for the treatment of osteoporosis, Paget's disease, bone metastasis, multiple myeloma, and other conditions that feature bone fragility.

Did you know?

About 600,000 particles of skin are shed every hour by each human. If you live to age 70 years, you have shed 105 pounds of dead skin.

For a complete list of videos, visit our video library