This topic contains a solution. Click here to go to the answer

Author Question: You believe in the power of compounding and decide to save 1 per day by avoiding the purchase of a ... (Read 18 times)

penguins

  • Hero Member
  • *****
  • Posts: 903
You believe in the power of compounding and decide to save 1 per day by avoiding the purchase
  of a soda. You deposit the 1 at the end of each day in a bank account that pays 8 interest
  compounded daily.
 
  You are going to take a trip in 20 years with the money you have accumulated.
  How much money will you have in 20 years, assuming 365 days per year?
  A) 7,500 B) 18,032 C) 12,438 D) 22,456

Question 2

Based on the security market line, Robo-Tech stock has a required return of 14 and Friendly
  Insurance Company has a required return of 10. Robo-Tech has a standard deviation of returns of
  18. Therefore,
 
  A) the beta for Friendly must be greater than the beta for Robo-Tech because Friendly is the
  better buy for a risk-averse investor.
  B) Friendly must have a standard deviation of returns of less than 18 because Friendly is less
  risky than Robo-Tech.
  C) all rational investors will prefer Friendly over Robo-Tech.
  D) for a well-diversified investor, Friendly is less risky than Robo-Tech.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

mcinincha279

  • Sr. Member
  • ****
  • Posts: 316
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 55% of students answer this correctly




penguins

  • Member
  • Posts: 903
Reply 2 on: Jul 11, 2018
YES! Correct, THANKS for helping me on my review


JCABRERA33

  • Member
  • Posts: 344
Reply 3 on: Yesterday
Excellent

 

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

About 60% of newborn infants in the United States are jaundiced; that is, they look yellow. Kernicterus is a form of brain damage caused by excessive jaundice. When babies begin to be affected by excessive jaundice and begin to have brain damage, they become excessively lethargic.

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.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

For a complete list of videos, visit our video library