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 47 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?

Hip fractures are the most serious consequences of osteoporosis. The incidence of hip fractures increases with each decade among patients in their 60s to patients in their 90s for both women and men of all populations. Men and women older than 80 years of age show the highest incidence of hip fractures.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

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?

In most cases, kidneys can recover from almost complete loss of function, such as in acute kidney (renal) failure.

Did you know?

There used to be a metric calendar, as well as metric clocks. The metric calendar, or "French Republican Calendar" divided the year into 12 months, but each month was divided into three 10-day weeks. Each day had 10 decimal hours. Each hour had 100 decimal minutes. Due to lack of popularity, the metric clocks and calendars were ended in 1795, three years after they had been first marketed.

Annual Rings Annual Rings
Annual Water Use in the United States Annual Water Use in the United States
Example of a patient statement. Example of a patient statement.
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 ...
The treasurer of a union proposes changing the method of compounding interest on premium ... The treasurer of a union proposes changing the method of compounding interest on premium ...
Life Table for an Annual Plant Cohort Life Table for an Annual Plant Cohort
Video: Coronary Heart Disease Animation

For a complete list of videos, visit our video library