Question: Question 12 (15 points) In class we discussed compound interest and showed one chart that visually demonstrates compound interest. A) Draw a picture of

one chart that visually demonstrates compound interest. A) Draw a picture of

Question 12 (15 points) In class we discussed compound interest and showed one chart that visually demonstrates compound interest. A) Draw a picture of the compound interest graph we discussed in class. You should show Total Value versus time, and relative amounts of original in- vestment, interest, and interest on interest. B) What was the reason we discussed as to why this is such an important pic- ture? Answer: Question 13 (10 points) In class we discussed the efficient market hypothesis, the law of one price, and NPV calculations. If all three of these concepts are true, what are the implications for the entire financial management industry? (A few sentences should be enough) Answer:

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