The principle of compounding implies that:we should diversify enough so that the returns on different stocks will be the same at some time in the future.any difference in the rate of investment returns will stay constant over time.a small difference in the rate of investment returns makes no difference over a long period.a small difference in the rate of investment returns can have a large difference over a long period.

We should diversify enough so that the returns on different stocks will be the same at some time in…

Answered: The principle of compounding implies…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Which one of the following options is usually an appealing way to try to increase a company's ROE? Issuing additional shares of stock and using the proceeds to retire long-term debt and short-term loans. Taking aggressive actions to boost the company's retained earnings. Not paying a dividend and using all available cash to pay down debt. Repurchasing shares of common stock. Increasing the ompany's annual dividend by 10% or $0.25 per share, whichever is higher.
Find the consumer and producer surpluses by using the demand and supply functions, where p is the price (in dollars) and x is the number of units (in millions). Demand Function Supply Function p=670 23x p= 44x consumer surplus $ producer surplus $ X X
Imagine that you run a business that manufactures a unique medical product. The potential demand for the product is very short lived and uncertain. Your production cycle is very long, which means you need to have the products ready in advance. If the demand for your product arises (only 30% chance), they will be sold well; if not, the products will remain unsold and you will need to liquidate them for $500 each. You predict that the demand will be normally distributed with mean= 15000 and standard deviation= 7000. The production cost of your product is, on average, $5500. You will sell your product for $12500. Suppose you make 18000 products, and you get lucky and demand will occur this year. What is your expected profit?
Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $400 per year for 10 years at 4%. $ $200 per year for 5 years at 2%. $ $300 per year for 6 years at 0%. $ Rework previous parts assuming they are annuities due. Present value of $400 per year for 10 years at 4%: $ Present value of $200 per year for 5 years at 2%: $ Present value of $300 per year for 6 years at 0%: $
Nippon Steel's expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $45,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 11% per year? The equivalent annual worth is determined to be $

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