If you had $5,000 to invest for 4 years with the goal of
greatest return on...
If you had $5,000 to invest for 4 years with the goal of
greatest return on your investment, would you rather invest in an
account paying (a) 7.2% compounded quarterly, (b) 7.15% compounded
daily, or (c) 7.1% compounded hourly?
. If you had $5,000 to invest for 4 years with the goal of
greatest return on your investment, would you rather invest in an
account paying (a) 7.2% compounded quarterly, (b) 7.15% compounded
daily, or (c) 7.1% compounded hourly?
You have $15,000 to invest in a stock portfolio and a goal of an
expected return of 12.5 percent. You can choose between Stock E
with an expected return of 14.3 percent and Stock F with an
expected return of 10.5 percent. How much should you invest in each
stock? Please show work in Excel sheet
Portfolio Value $ 15,000
Stock E E(R) 14.30%
Stock F E(R) 10.50%
Portfolio E(R) 12.50%
Weight of Stock X ?
Weight of Stock Y...
You invest $5,000 in the stock market today and you expect a return
of 7% annually. What do you expect this investment to be worth in
20 years? How many years will it take for this investment to double
in value?
Recalculate
your answers
with a return of 7% quarterly.
Describe how the investment grows
over time
using terminology.
If you had $5,000 to invest, would you rather put your money in
a mutual fund, an index fund, or an exchange traded fund
(ETF)? Carefully explain the pros and cons of each
indirect finance
method.
Suppose you invest $5,000 today, and plan on continuing this
contribution for the next 15 years. Afterwards, you are going to
stop contributing to the account, but you will not need the money
for another 25 years. Assuming that you can earn 8% on this account
for the life of the account, how much will you have at the end of
this period?
Your investment account pays 8.2%, compounded annually. If you
invest $5,000 today, how many years will it take for your
investment to grow to $9,140.20?
Select the correct answer.
a. 9.15
b. 12.15
c. 7.65
d. 6.15
e. 10.65
One year ago Lerner and Luckmann Co. issued 15-year,
noncallable, 8% annual coupon bonds at their par value of $1,000.
Today, the market interest rate on these bonds is 5.5%. What is the
current price of the bonds, given that they...
You
invest $10,000 at a 12 percent annual rate of return for 5 years.
How much additional interest will this investment provide if it
pays interest compounded annually as opposed to simple interest?
(Round to the nearest dollar)
Suppose that you invest $5,000 in a mutual fund at the end of
each year for the next 30 years. This period of time is your
planned holding period. You intend to leave these contributions and
any fund distributions earned in the account until the end of your
holding period. Your forecast rate of return on this mutual fund is
9% per year, compounded annually.What is the forecast value of your account at the end of your
holding period?Round your...
You have $5,000 to invest for the next year and are considering
three alternatives
a) A money market fund with an average maturity of 30 days
offering a current annualized yield of 3%.
b) A two-year CD at a bank offering an interest rate of 4.5%
c) A 20-year U.S. Treasury bond offering a yield to maturity of
6% per year.
What role does your forecast of future interest rates play in
your decision?
4 You are planning to invest $2,500 today for three years at a
nominal interest rate of 9 percent with annual compounding. What
would be the future value of your investment? Now assume that
inflation is expected to be 3 percent per year over the same
three-year period. What would be the investment's future value in
terms of purchasing power? What would be the investment's future
value in terms of purchasing power if inflation occurs at a 9
percent annual...