Question: a. Given the information in the table, the expected rate of return for stock A is 16.35 %. (Round to two decimal places.) The standard
a. Given the information in the table, the expected rate of return for stock A is 16.35 %. (Round to two decimal places.) The standard deviation of stock A is 2.94'%. (Round to two decimal places.) b. The expected rate of return for stock B is 9.45'%. (Round to two decimal places.) The standard deviation for stock B is 9.09'%. (Round to two decimal places.) c. Based on the risk (as measured by the standard deviation) and return of each stock. which investment is better? (Select the best choice below.) V Stock A is better because it has a higher expected rate of return with less risk. Stock B is better because it has a lower expected rate of return with more risk. (Expected rate of return and risk) Svntex, Inc. is considering an investment in one of two common stocks. Given the information that follows, which investment is better. based on the risk (as measured by the standard deviation) and return? Common Stock A Common Stock B Probability Return Probability Return 0.25 12% 0.25 6% 0.50 14% 0.25 7% 0.25 21% 0.25 16% 0.25 23% (Click on the icon :1 in order to copyr'a's contents into a spreadsheet.) (Related to Checkpoint 6.1) (Future value ofan annuity) Imagine that Homer Simpson actually invested the $100,000 he earned providing Mr. Burns entertainment 9 years ago at 10 percent annual interest and that he starts investing an additional $1,800 a yeartoday and at the beginning of each year for 20 years at the same 10 percent annual rate. How much money will Homer have 20 years from today? The amount of money Homer will have 20 years from now is $D. (Round to the nearest cent.) a. If Calvin made monthly payments of $1 10 at the end of each month, how long would it take to pay off his credit card? 88' months (Round up to the nearest unit.) b. If Calvin made monthly payments of $165 at the end of each month, how long would it take to pay off his credit card? 46' months (Round up to the nearest unit.) (Annuity payments) Calvin Johnson has a $4,000 debt balance on his Visa card that charges 14.2 percentAPR compounded monthly. In 2009, Calvin's minimum monthly payment is 3 percent of his debt balance, which is $120. How many months (round up) will it take Calvin Johnson to pay off his credit card if he pays the current minimum payment of $120 at the end of each month? In 2010, as the result of a federal mandate, the minimum monthly payment on credit cards rose to 4 percent. If Calvin made monthly payments of$160 at the end of each month, how long would it take to pay off his credit card? a. How much will Selma have when she retires? $ 179,970.84' (Round to the nearest cent.) b. How much will Patty have when she retires? $ 151,797.69' (Round to the nearest cent.) (Saving for retirementfuture value of an annuity) Selma and Patty Bouvier are twins and both work at the Springfield DMV. Selma and Patty Bouvier decide to save for retirement, which is 35 years away. They'll both receive an annual return of 7 percent on their investment over the next 35 years. Selma invests $2,400 per year at the end of each year only for the first 10 years of the 35-year periodfor a total of $24,000 saved. Patty doesn't start saving for 10 years and then saves $2,400 per year at the end of each year for the remaining 25 yearsfor a total of $60,000 saved. How much will each of them have when they retire
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