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Author Question: How does compound interest differ from simple interest? What will be an ideal ... (Read 86 times)

Arii_bell

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How does compound interest differ from simple interest?
 
  What will be an ideal response?

Question 2

You are thinking of adding one of two investments to an already well- diversified portfolio.
 
  Security A Security B
  Expected Return = 14 Expected Return = 16
  Standard Deviation of Standard Deviation of
  Returns = 16 Returns = 20
  Beta = 1.2 Beta = 1.2
  If you are a risk-averse investor, which one is the better choice?
  A) Security A
  B) Security B
  C) Security B, but only if Security B's required return is greater than 12.
  D) Either security would be acceptable because they have the same beta.


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pallen55

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Arii_bell

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Reply 2 on: Jul 11, 2018
Great answer, keep it coming :)


LegendaryAnswers

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

 

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