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

Author Question: The EAR is 5.85 if the APR is 5.85 and compounding is annual. Indicate whether the statement is ... (Read 59 times)

geodog55

  • Hero Member
  • *****
  • Posts: 530
on: Jul 10, 2018
The EAR is 5.85 if the APR is 5.85 and compounding is annual.
 
  Indicate whether the statement is true or false.

Question 2

Beta is a more relevant measure of risk to an investor with a well-diversified portfolio than to an investor who holds only one stock.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

hollysheppard095

  • Sr. Member
  • ****
  • Posts: 339
Reply #1 on: Jul 10, 2018
Answer to Question 1

Answer: TRUE
Explanation: With APR = 5.85, C/Y = 1, periodic interest rate = r = 0.0585, we have:
EAR = (1 + periodic rate)C/Y - 1 = (1.0585)1 - 1 = 1.0585 - 1 = 0.0585 or 5.85 as the EAR.

Answer to Question 2

TRUE


geodog55

  • Hero Member
  • *****
  • Posts: 530
Reply #2 on: Jul 10, 2018
Thank you :)


hollysheppard095

  • Sr. Member
  • ****
  • Posts: 339
Reply #3 on: Jul 10, 2018
Happy to help you


« previous next »
 

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

There are more nerve cells in one human brain than there are stars in the Milky Way.

Did you know?

Thyroid conditions cause a higher risk of fibromyalgia and chronic fatigue syndrome.

Did you know?

Asthma-like symptoms were first recorded about 3,500 years ago in Egypt. The first manuscript specifically written about asthma was in the year 1190, describing a condition characterized by sudden breathlessness. The treatments listed in this manuscript include chicken soup, herbs, and sexual abstinence.

A typical bank statement. A typical bank statement.
Homeschooling has come a long way. These children are performing in a musical at the annual ... Homeschooling has come a long way. These children are performing in a musical at the annual ...
Annual Earthquake Occurrence Annual Earthquake Occurrence
Jawad makes semi-annual contributions of $2000 starting on his 27th birthday. How much will he ... Jawad makes semi-annual contributions of $2000 starting on his 27th birthday. How much will he ...
Nader makes semi-annual payments of $3000 to pay off his loan. Because of unemployment, he ... Nader makes semi-annual payments of $3000 to pay off his loan. Because of unemployment, he ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Attention Deficit Disorder (ADD)

For a complete list of videos, visit our video library