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Author Question: What is the net present value's assumption about how cash flows are reinvested? A) They are ... (Read 20 times)

clmills979

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What is the net present value's assumption about how cash flows are reinvested?
 
  A) They are reinvested only at the end of the project.
  B) They are reinvested at the IRR.
  C) They are reinvested at the APR.
  D) They are reinvested at the firm's discount rate.

Question 2

Stocks A and B are perfectly negatively correlated ( = -1 ) and their standard deviations are 0.20 and 0.30 respectively. What is the standard deviation of a portfolio with 50 invested in Stock A and 50 invested in Stock B?
 
  A) 5
  B) 6
  C) 7
  D) 8
  E) 9


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shaikhs

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clmills979

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Reply 2 on: Jul 10, 2018
Wow, this really help


momolu

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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