Suppose you have a medium risk-tolerance, and you want an annual return of $355. You decide toinvest part in Fund A and the rest in Fund B. How much do you need to invest in Fund A?Round to the nearest cent.tA You have $5000 to invest for 1 year. Fund A has an estimated 4% annual return, and Fund B has anestimated 10% annual return.Fund A is more stable, and preferred among investors with low risk tolerance. Fund B is less stable,but has larger returns.Answer the following questions about this investment opportunity.

Answered: Image /qna-images/answer/829f5785-4e13-45ce-bc66-85830d99ee43.jpg

Answered: You have $5000 to invest for 1 year.…

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter12: Sequences, Series And Binomial Theorem

Section12.3: Geometric Sequences And Series

Problem 12.58TI: What is the total effect on the economy of a government tax rebate of $500 to each household in...

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What is the total effect on the economy of a government tax rebate of $500 to each household in order to stimulate the economy if each household will spend of the rebate in goods and services?
A retail department store must make a choice between two investments with a preferred rate of return of 13.5%. Alternative 1 will provide the store with returns of $12.000 at the end of year two, $15.000 at the end of year four and $9000 at the end of year 6. Alternative 2 will provide the store with annual returns of $5800 per year for six years. Which alternative is preferable? Select one: a. Alternative 2 b. Altemative 1
IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity. You are trying to assess the value of the investment and must estimate its cost of capital. You find the following data for a publicly-traded firm in the same line of business: Debt Outstanding (book value, AA-rated) $423 million Number of shares of common stock $67 million Stock price per share $17.29 Book value of equity per share $6.24 Beta of equity 1.19 What is your estimate of the project's beta? What assumptions do you need to make?
The table below gives data on three movies. Gross earnings is the amount of money the movie brings in. Compare the net earnings (money made after expenses) for the three movies. Which provided the best return on investment? Release Date 10/29/2004 12/19/1997 $200,000,000 | Jurassic Park | 06/11/1993 | $63,000,000 Movie Saw Titanic Budget $1,200,000 Gross Earnings $103,096,345 $1,842,879,955 $923,863,984
Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional" shares of its stock. (a) If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy? shares (b) From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-cost averaging and the total shares for the year.…
Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional" shares of its stock. (a) If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy? shares (b) From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-cost averaging and the total shares for the year. Round to…
Although investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional" shares of its stock. (a)If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy? shares (b)From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-cost averaging and the total shares for the year. Round…
You are considering making a movie. The movie is expected to cost $10.7 million upfront and take a year to make. After that, it is expected to make $4.4 million in the first year it is released (end of year 2) and $1.7 million for the following 4 years (end of years 3 through 6). What is the payback period of this investment? If you require a payback period of 2 years, will you make the movie? Does the movie have positive NPV if the cost of capital is 10.3%? C... The payback period is 5.70588 years. (Round up to the nearest integer.) Based on the payback period requirement, would you make this movie? No If the cost of capital is 10.3%, the NPV is $ million. (Round to three decimal places.) (Select from the drop-down menu.) ▸
Duffin House, Higgins Press, and Sickle Publications all went public on the same day recently. John O'Hagan had the opportunity to participate in all three initial public offerings (partly because he and Marjory Duffin are good friends). He made a considerable profit when he sold all of the stock 2 days later on the open market. The following table shows the purchase price and percentage yield on the investment in each company. Purchase Priceper Share ($) Yield (%) Duffin House (DHS) 8 20 Higgins Press (HPR) 10 15 Sickle Publications (SPUB) 15 15 He invested $25,000 in a total of 2,600 shares and made a $4,350 profit from the transactions. How many shares in each company did he purchase? Duffin House shares Higgins Press shares Sickle Publications shares I have x+y+z=2600 8x+10y+15z=25,000 160x+150y+225z=435,000 i keep getting y=506, i know im doing something wrong :(
Many investors and financial analysts believe the Dow Jones Industrial Average (DJIA) gives a good barometer of the overall stock market. On January 31, 2006, 9 of the 30 stocks making up the DJIA increased in price (The Wall Street Journal, February 1, 2006). On the basis of this fact, a financial analyst says that maybe we can assume that 30% of the stocks traded on the New York Stock Exchange (NYSE) went up the same day. You have decided to do your own test. A sample of 78 stocks traded on the NYSE that day showed that 15 went up. You are going to complete your test to see if the proportion stocks that went up is significantly less than 0.3. You use a significance level of a = 0.001. What is the test statistic for this sample? (This is called the Z-Stat in your StatCrunch output. Report answer accurate to three decimal places.) test statistic = What is the p-value for this sample? (Report answer accurate to four decimal places.) p-value =
A citrus grower anticipates a profit of $100,000 this year if the nightly temperatures remain mild. Unfortunately, the weather forecast indicates a 25% chance that the temperatures will drop below freezing during the next week. Such freezing weather will destroy 40% of the crop and reduce the profit to $60,000. However, the grower can protect the citrus fruit against the possible freezing (using smudge pots, electric fans, and so on) at a cost of $5000. Should the grower spend the $5000 and thereby reducethe profit to $95,000? [Hint: Compute E(X ), where X is theprofit the grower will get if he does nothing to protect the fruit.]
A customer has approached a bank for a $50,000 one-year loan at 12% interest. If the bank does not approve the loan, the $50,000 will be invested in bonds that earn a 6% annual return. WIthout further information, the bank feels that there is a 4% chance that the customer will totally default on the loan. If the customer totally defaults, the bank loses $50,000. At a cost of $500, the bank can thoroughly investigate the customer's credit record and supply a favorable or unfavorable recommendation. Past experiences indicates that p(favorable recommendations|customer does not default) =77/96 p(favorable recommendations|customer defaults)= 1/4 How can the bank maximize its expected profits? Find EVSI and EVPI.

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