In 1987, a Van Gogh’s painting Sunflowers was auctioned for $36m. In 1889, 98 years earlier,...

In 1987, a Van Gogh’s painting Sunflowers was auctioned for $36m. In 1889, 98 years earlier, it had sold for $125. What was the IRR of buying it in 1889 and selling it in 1987?

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jeff jeffy answered 2 years ago

Brad owns a Van Gogh masterpiece worth $5 million. There is a 1% chance the painting...

Brad owns a Van Gogh masterpiece worth $5 million. There is a 1% chance the painting will get stolen, leaving Brad with nothing. What is the expected value of this gamble? What is the minimum insurance premium an insurance company would charge to fully insure the painting against theft? (Note: minimum insurance premium = fair insurance premium = Expected loss) Brad's certainty equivalent for this risky situation is $4,900,000. What is the maximum insurance premium he'd be willing to pay...

Jules owns a Van Gogh masterpiece worth $5 million. There is a 1% chance the painting...

Jules owns a Van Gogh masterpiece worth $5 million. There is a 1% chance the painting will get stolen, leaving Jules with nothing. (a) What is the expected value of this gamble? (b) What is the minimum insurance premium an insurance company would charge to fully insure the painting against theft? (c) Jules's certainty equivalent for this risky situation is $4,900,000. What is the maximum insurance premium he'd be willing to pay for full insurance?

In January of 2016, the average price of an asset was $28,558. 7 years earlier, the...

In January of 2016, the average price of an asset was $28,558. 7 years earlier, the average price was $20,808. What was the annual increase in the selling price? Multiple Choice -4.42% 4.63% 4.16% 5.55% 5.09%

In 1987, Roy leased real estate to Drab Corporation for 20 years. Drab Corporation made significant...

In 1987, Roy leased real estate to Drab Corporation for 20 years. Drab Corporation made significant capital improvements to the property. In 2006, Drab decides not to renew the lease and vacates the property. At that time, the value of the improvements is $800,000. Roy sells the real estate in 2018 for $1,200,000 of which $900,000 is attributable to the improvements. When is Roy taxed on the improvements made by Drab Corporation? Lee, a citizen of Korea, is a resident...

Why Vietnam poor country twenty years ago?Explain growth of Vietnam economy since 1987

Carl and Cassia need to replace a delivery van in 3 years. The cost of delivery...

Carl and Cassia need to replace a delivery van in 3 years. The cost of delivery vans is $23,000 today, and is expected to grow 5% a year over the next 3 years. If Carl and Cassia have saved $4,500 towards the van already, how much per month do Carl and Cassia need to save, if they think they can earn 7% per year on their savings, to pay for the new van 3 years from now? $528 $805 $185...

An investor bought a stock for $85 and sold it exactly 2 years later for $98....

An investor bought a stock for $85 and sold it exactly 2 years later for $98. He received two dividend payments of $3 each during his holding period (the first at the end of the first year and the second, just before he sold his shares). The re-investment rate was 5% per year. Calculate the following: The investor's capital gain: $ The future value of his reinvested dividends: $ The investor’s annual realized rate of return(ROR):

A new van costs $25,000, has an estimated useful life of five years and an estimated...

A new van costs $25,000, has an estimated useful life of five years and an estimated salvage value of $5,000 at the end of that time. It is expected that the van will be driven 100,000 miles during its useful or service life. The Nation Express Company purchases this van on April 1, 2019. During 2019 the van is driven 13,000 miles and during 2020 it was driven 21,000 miles. On January 1, 2021, the van is sold for $7,000....

The mean annual inflation rate in the United States over the past 98 years is 3.37%...

The mean annual inflation rate in the United States over the past 98 years is 3.37% and has a standard deviation of approximately 5%. In 2018, the inflation rate was below 1.9%. If the annual inflation rate is normally distributed, what is the probability that inflation rate will be below 1.9% in 2019?

Penny sold 400 shares of RBC for $78, that she paid $82 for 4 years earlier....

Penny sold 400 shares of RBC for $78, that she paid $82 for 4 years earlier. She received $1 .30 of dividends per share each year. calculate simple and compound holding period returns.

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