Question: please also provide an explanation for each question, and not all selected option is an answer. some of them were correct, some were not. If
please also provide an explanation for each question, and not all selected option is an answer. some of them were correct, some were not.





If the interest rate were 12.5 percent, how much would people be willing to pay for a stock that was certain to yield a $20 per share stream of net earnings continuously in the future? $20 $25 O $160 $250 Between the years 1900-2015, the nominal interest rate on Treasury Bonds peaked at about: O 15 percent 10 percent 5 percent 2 percent. Which of the following is true? The stock market helps channel the savings of individuals into business activities that create wealth. Individual investors can reduce their risk by holding a large share of their wealth in the form of the stock ownership of a single company. Historically, the long-term real rate of return of stocks has generally been less than that of bonds. Mutual funds that have done well in the past are more likely to outperform the market average in the future. Which of the following is true? Managed equity funds generally outperform indexed equity mutual funds. Managed equity funds merely hold stocks in the same proportion they are represented in a broad stock market index such as the Standard & Poor's 500. Indexed equity funds generally have lower management and operating costs than managed funds. Indexed equity funds generally engage in more stock trading than managed funds. Farmer Fanny sells her crops in a competitive price-taker market. If she produces 500 bushels for total revenue of $2,500 and if harvesting the 501st bushel would raise her total cost from $2,500 to $2,505, her revenue will increase by $10 if she harvests the 501st bushel revenue will fall by $5 if she harvests the 501st bushel average fixed cost will rise if she harvests the 501st bushel O profit will fall by $10 if she harvests the 501st bushel profit will remain unchanged if she harvests the 501st bushel
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