Casey has $1,000 that she wont need for 3 months. Her bank is offering 3-month CDs at
Question:
Casey has $1,000 that she won’t need for 3 months. Her bank is offering 3-month CDs at 3% APY. Disney stock is doing well lately averaging about an 8% return. Calculate the risk-return trade-off (amount). Which investment options should Casey exercise? Why?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 64% (17 reviews)
3 APY for three months on 1000 30 in interest12 months x 3 months 750Dis...View the full answer
Answered By
Muhammad Umair
I have done job as Embedded System Engineer for just four months but after it i have decided to open my own lab and to work on projects that i can launch my own product in market. I work on different softwares like Proteus, Mikroc to program Embedded Systems. My basic work is on Embedded Systems. I have skills in Autocad, Proteus, C++, C programming and i love to share these skills to other to enhance my knowledge too.
3.50+
1+ Reviews
10+ Question Solved
Related Book For
Personal Finance Building Your Future
ISBN: 978-0073530659
1st edition
Authors: Robert B. Walker, Kristy P. Walker
Question Posted:
Students also viewed these Business questions
-
a. Assume that Carolyn places currently available funds in the savings account. Determine the amount of money Carolyn will have available at retirement once she sells her house if she retires at (1)...
-
Casey has $ 1,000 to invest in a certificate of deposit. Her local bank offers her 2.5% on a 12- month FDIC- insured CD. A nonfinancial institution offers her 5.2% on a 12- month CD. What is the risk...
-
Daniel B. Butler and Freida C. Butler, husband and wife, file a joint return. The Butlers live at 625 Oak Street in Corbin, KY 40701. Dan's Social Security number is 111-11-1111, and Freida's is...
-
What is marginal cost Explain with an example.
-
Cole, a 48-year-old married individual, received the following in 2016: S corporation stock dividends...............................................................$5,000 Interest earned on federal...
-
Continue the inverted pendulum example of Section 9.2.2 with two more iterations of the controller where the output of one iteration provides the input values for the next iteration.
-
To compute the test statistic for a test with matched pairs, we must compute the standard deviations of the samples. In Exercises 5 and 6, determine whether the statement is true or false. If the...
-
Below, we will investigate the profit maximizing choice in the two steps that first involve a strict focus on the cost side. A: Consider again (as in the previous exercise) a production process that...
-
Starting Balance $ 6 , 8 1 9 . 0 0 , goal at 5 years s $ 4 3 , 0 0 0 . 2 . 5 % interest. Compounded monthly. What monthly payments need to be deposited for 5 years to meet the goal of $ 4 3 , 0 0 0 ?...
-
Find Vx (s) in the circuit shown in Fig. 16.49. 0.25 H 10 0.2 F
-
Describe a negative feedback mechanism for controlling rising cytoplasmic Ca 2+ concentration in cells that require rapid changes in Ca 2+ concentration for normal functioning. How would a drug that...
-
Certain proton pump inhibitors inhibit secretion of stomach acid and are among the most widely sold drugs in the world today. What pump does this type of drug inhibit, and where is this pump located?
-
Which alternative would you prefer: (1) 1 percent a month, compounded monthly, or (2) 1/2 percent a month, compounded semimonthly (24 periods)?
-
What are five of the skills of internal auditors that have been identified as essential for success in the future? What can your internal audit department do to develop those skills among its staff?
-
Explain the importance of independence and objectivity and how having unfettered access within the organization impacts the internal auditors ability to review any program, process, system, record,...
-
Explain how an auditor would perform each of the following procedures: a. Trace b. Vouch c. Reconcile d. Foot e. Cross-foot
-
What component of aggregate demand is influenced by technological change? What about for aggregate supply? How would improvements in productivity affect investment spending? Other things equal, how...
-
Explain the importance of using business objectives while planning and performing operational audits, and how to use them when communicating the results of the audit.
-
Using the following data from both Garcon Company and Pepper Company for the year ended December 31, 2019,compute (1) The cost of goods manufactured (2) The cost of goods sold. Garcon Co. Pepper Co....
-
Find the cross product a x b and verify that it is orthogonal to both a and b. a = (t, 1, 1/t), b = (t 2 , t 2 , 1)
-
What is the value (today's price) of a preferred stock that pays an annual dividend of $3.50 when the required rate of return is 8.5 percent? What is the value when the required rate of return...
-
A $1,000 TIPS (Treasury Inflation-Protected Security) is currently selling for $940 and carries a coupon interest rate of 4 percent. a. If you buy this bond, how much will you receive for your first...
-
A $1,000 TIPS (Treasury Inflation-Protected Security) is currently selling for $940 and carries a coupon interest rate of 4 percent. a. If you buy this bond, how much will you receive for your first...
-
Convert 3. V x+y2 xyz dz dx dy into an integral in cylindrical coordinates. (10 pts) Calculate the integral, show work.
-
Patel and Sons Inc. uses a standard cost system to apply factory overhead costs to units produced. Practical capacity for the plant is defined as 50,700 machine hours per year, which represents...
-
the equation of the trajectory of a rocket fired on level ground how far does the trajectory of a rocket travel horizontally before it hits the ground
Study smarter with the SolutionInn App