Blog

Suppose a five-year, $[f] bond with annual coupons has a price of $[p] and a yield to maturity of [r]%. What is the bond duration? Hint: First calculate the amount of each coupon payment.

Suppose firm ABC will pay a $[d] dividend next year and the cost ofcapital is [r]%. Starting from year 1, the firm is expected to grow [g1]% a year until year [t], when its growth reduces to [g2]%. What is the value of the company?

 When a fixed amount of ideal gas goes through an isochoric process,  

    4. Suppose

Suppose the risk free return is [rf]% and the market risk premium is [mrp]%. If  the beta of Apple stock is [beta], what is the expected return according to CAPM?

To which organ system does structure # 1 belong?   (one word)  

If the temperature of a fixed amount of an ideal gas is increased, it NECESSARILY follows that  

Two stocks have the following characteristics: Stock A Stock B T-bill E(r) [ra]% [rb]% [rf]%

Is this tissue voluntary or involuntary? .

Suppose stock B has a standard deviation of [sb]%. Stock S has a standard deviation of [ss]%. The correlation coefficient of stocks B’s and S’s returns is [rho]. What is the standard deviation of a portfolio consists of [wb] stock B and the rest stock S.