Suppose you have an asset that pays a single cash flow of $[CF] in [T] years. Assuming a continuous compound annual interest rate of [Rc]%, what is its present value?
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Suppose Capital One is advertising a 60-month, [APR]% APR mo…
Suppose Capital One is advertising a 60-month, [APR]% APR motorcycle loan. What will your monthly payment be if you need to borrow $[PV] to purchase your dream car?
Suppose you want to buy a car in [T] years. You estimate tha…
Suppose you want to buy a car in [T] years. You estimate that, once you start work, you could save $[CF] a year out of your income and earn an effective annual return of [IY]% on these savings. How much will you be able to spend after [T] years?
You invest $[PV] at a [APR]% APR compounded semiannually. Ho…
You invest $[PV] at a [APR]% APR compounded semiannually. How much money will you have after [T] years?
The ratios of the measures of the sides of a triangle is 9:7…
The ratios of the measures of the sides of a triangle is 9:7:3. If the perimeter of the triangle is 266 inches, find the length of the shortest side. Show all work. Enter only the numerical portion of the answer in the blank.
Apple has a beta of [beta] and a correlation with the market…
Apple has a beta of [beta] and a correlation with the market of [correlation]%. The market’s risk premium and Sharpe ratio are [RP]% and [SR]. What is the standard deviation of Apple?
Based on historical data, Target has a [rt]% expected annual…
Based on historical data, Target has a [rt]% expected annual return and [sdt]% standard deviation while Berkshire Hathaway has a [rb]% expected return and a [sdb]% standard deviation. Assume the correlation between the returns of these companies is [corr]%. What is the expected return of your portfolio if you split your money evenly between Target and Berkshire?
IBM and the market have Sharpe ratios of [SR1] and [SR2]. Wh…
IBM and the market have Sharpe ratios of [SR1] and [SR2]. What is the correlation between IBM and the market?
MF Corp has an ROE of [ROE]% and a plowback ratio of [b]%. I…
MF Corp has an ROE of [ROE]% and a plowback ratio of [b]%. If the coming year’s earnings are expected to be $[E] per share, at what price will the stock sell? Assume the market capitalization rate (i.e., cost of equity) is [k]%.
What is the beta of a portfolio with an expected return of E…
What is the beta of a portfolio with an expected return of E[Rp] = [Rp]% when the market risk premium is [MRP]% and the risk-free rate is Rf = [Rf]%?