Author Question: Calculate the present value of 800 received at the beginning of year 1, 400 received at the ... (Read 94 times)

Melani1276

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Calculate the present value of 800 received at the beginning of year 1, 400 received at the beginning of year 2, and 700 received at the beginning of year 3, assuming an opportunity cost of 9 percent.
 
  What will be an ideal response?

Question 2

Beta coefficient is an index of the degree of movement of an asset's return in response to a change in the risk-free asset.
 
  Indicate whether the statement is true or false



diesoon

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Answer to Question 1

PV = 800 + 400(1.09 ) + 700(1.09 )2 = 1,756.15

Answer to Question 2

FALSE



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