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Author Question: Your investment advisor informs you that you do not need to pay a fee for his services. Instead, he ... (Read 70 times)

asan beg

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on: Jul 10, 2018
Your investment advisor informs you that you do not need to pay a fee for his services. Instead, he invests your money for one month and keeps all of the proceeds before investing it for you.
 
  If your advisor makes and keeps a 2 return on your investment, what is his EAR if the earnings rate could be extrapolated for one year?
  A) 2.00
  B) 24.00
  C) 26.82
  D) 126.82

Question 2

Non-uniform demand can be accommodated in the EOQ model by allowing for non-uniform
  ordering costs.
 
  Indicate whether the statement is true or false


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chinwesucks

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Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: C
Explanation: C) EAR = (1 + hpr) (1/n) - 1 = (1.02)(12) - 1 = 26.82.

Answer to Question 2

FALSE


asan beg

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)

kishoreddi

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Reply 3 on: Yesterday
Gracias!

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