Please solve... 3.Assume you have $5,000 burning a hole in your pocket, so you decide toinvest it into something. You narrow your options down to two:BitcoinYour high school friend's businessWhile watching a podcast where Joe Rogan promises you a return of 300% yearly inbitcoin, your old high school friend messages you on Facebook, asking you to investin her new business, with a vague promise of being your own boss, a flashy car, and a5% return over the next year. The current interest rate accrued on the $5,000 is 1%.a.Assuming all these returns to be true (and ignoring thebenefits/disadvantages of being your own boss and the flashy car), how would youoptimally invest your money?b.What is the opportunity cost of your decision? (Dollar amount)What is the economic profit of your decision? (Dollar amount)C.

Given that; The investor has $5000 and he has following to options:- 1) Bitcoin 2) His high school…

Answered: 3. Assume you have $5,000 burning a…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter17: Financial Markets

Section: Chapter Questions

Problem 22RQ: Why should a financial investor care about diversification?

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At a military base in Texas, Corporal Stan Moneymaker has been offered a wonderful savings plan. These are the salesperson’s words: “During your 48-month tour of duty, you will invest $200 per month for the first 45 months. We will make the 46th, 47th, and 48th payments of $200 each for you. When you leave the service, we will pay you $10,000 cash.” Is this a good deal for Corporal Moneymaker? Use the IRR method in developing your answer. What assumptions are being made by Corporal Moneymaker if he enters into this contract? ( please solve the ırr method not excel solution)
"Knowing how to secure your financial well-being is one of the most important things you'll ever need in life. You don't have to be a genius to do it. You just need to know a few basics, form a plan, and be ready to stick to it. No matter how much or little money you have, the important thing is to educate yourself about your opportunities. At the SEC [Securities and Exchange Commission], we enforce the laws that determine how investments are offered and sold to you. These laws protect investors, but you need to do your part, too. No one can guarantee that you'll make money from investments you make." Use the excerpt from the SEC's Guide to Saving and Investing to answer the following. Be sure to write in complete sentences. Explain different types of investments and savings accounts and how they help your money grow over time. Describe the importance of government agencies, like the SEC, in protecting your investments.
You borrow $1,000 from a bank to buy a car to use in your pizza delivery business. IS THIS AND INVESTMENT OR SAVINGS
11. Case study a. Let's say your friend offer simple investment. You are planning to buy an asset for RM 3350. This investment is very safe. You would sell off the asset in three years for RM 400. You know you could invest RM 335 elsewhere at 10 percent with very little risk. What do you think of the proposed investment?
4 please Help me with the answer. the one i have is wrong
Please do your own work, don't copy from the internet Q2) 2, You invest $3,000 for three years at 12 percent. a. What is the value of your investment after one year? Multiply $3,000 × 1.12. b. What is the value of your investment after two years? Multiply your answer to part a by 1.12. c. What is the value of your investment after three years? Multiply your answer to part b by 1.12. This gives your final answer. Combine these three steps by using the formula to find the future value of $3,000 in 3 years at 12 percent interest.
8.
Suppose you have just inherited $10,500 and are considering different options for investing the money to maximize your return. If you are risk-neutral (that is, neither seek out or shy away from risk), which of the following options should you choose to maximize your expected return? A. Hold the money in cash and earn zero return. B. Invest the money in a corporate bond, with a stated return of 4%, but there is a chance of 9% the company could go bankrupt. C. Put the money in an interest-bearing checking account, which earns 3%. The FDIC insures the account against bank failure. D. Loan the money to one of your friends' roommates, Mike, at an agreed upon interest rate of 7%, but you believe there is a 5% chance that Mike will leave town without repaying you.
4. You wish to hire Ricky to manage your Dallas operations. The profits from the operations depend partially on how hard Ricky works, as follows. Probabilities Profit $10,000 Profit= $50,000 Lazy worker 40% 60% 20% Hard worker 80% If Ricky is lazy, he will surf the Internet all day, and he views this as a zero cost opportunity. However, Ricky would view working hard as a "personal cost" valued at $1,000. What fixed percentage of the profits should you offer Ricky? Assume Ricky only cares about his expected payment less any "personal cost."
11)Eva is saving money for a vacation she wants to take five years from now. If the trip will cost $1,000 and she puts her money into a savings account paying 3 percent interest, compounded annually, how much would Eva need to deposit today to reach her goal without making further deposits? Group of answer choices $961.54 $932.75 $862.61 $821.93
qUESTION 1 Please help me figure out which of the following multiple choice questions are correct. Please tell me which choices are correct and which are wrong
Abigail, an analyst with a venture capital firm, is approached by Tomas about financing his new business venture, a company that will produce solar-powered hydroponic growing equipment for light industrial use. What information should Abigail have before making a decision about financing Tomas’s new company?

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