The initial cost of a project is $70,000. The operating costs of this investment in year 1 is $9,000 which increases by 3% each year thereafter. Given the interest rate, 6%, determine the year in which the geometric increase ends. a) None of the answers is correct b) Between 15 and 18 years c) Between 22 and 25 years d) Between 7 and 10 years e) Between 11 and 14 years

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Factor Models

Many attributes might be related to an asset's risk, including market capitalization (size), dividend yield, growth, price-earnings ratio, etc. The use of these traditional descriptors, however, presents a few problems: