What is  a better investment Certificate of Deposit (CD) or Annuity and why?

Q: You own a stock portfolio invested 25 percent in Stock Q, 15 percent in Stock R, 10 percent in Stock…

A: Portfolio beta will be reflective of the systematic risk of the portfolio and it cannot be…

Q: When do the funds earn interest at the MARR?

A: The MARR (Minimum Acceptable Rate of Return), generally referred to as hurdle rate is the lowest or…

Q: What is meant by the concept of “potential savings (profits)”?

A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings…

Q: What distinguishes a capital investment from other investments?

A: Investments: It is the method by which an investor increases his value over some time for future…

Q: Why is it necessary to determine how long you can expect to reap benefit from the investment?

A: Individuals as well as firms often make investment and specify the time limit for which this…

Q: Why do payers nevertheless persist in using shared savings components of alternative payment models?

A: Alternative payment methods are defined as the payment method for goods or services that are not…

Q: what is an annuity? Provide an example

A: Annuity is an important concept in finance especially in the context of time value of money. Annuity…

Q: What is investment bank?

A: Investment bank: An investment bank (IB) is an intermediary of finance that does a diverse service.…

Q: What are investment returns?

A: Investment returns are a performance measure used to evaluate a speculation’s adequacy or to think…

Q: ExplainValuing REITs as Investments?

A: Valuing REITs as investments: A typical way for the calculation of REIT is to find the Net asset…

Q: What is the loan cash flow?

A: Answer: A cash flow loan is nothing but a form of debt finance in which bank lends money usually for…

Q: How long-term deposit accounts benefit borrowers

A: A deposit account is an account that is held by the customers of a bank and financial institutions…

Q: Explain Payment Caps and Negative Amortization?

A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…

Q: What is withdrawal risk?

A: Hello. Since your question has multiple parts, we will solve the first question for you. If you want…

Q: What are annuities, growing annuities, perpetuities and growing perpetuities. What are the…

A: Annuity is a sequence of equal payments that take place over a fixed number of periods. Payments…

Q: Explain the addition to the interest rate, HELOC borrowers consider the issues?

A: Home buyers mostly take loans to buy the home and they will pay the debt in equated installments.…

Q: What is a mini-perm or bullet loan? When and why is this type of loan used?

A: Answer: Project development may be characterized as the process of designing, planning,…