Investments
Investments
11th Edition
ISBN: 9781259277177
Author: Zvi Bodie Professor, Alex Kane, Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 5, Problem 9PS
Summary Introduction

To calculate: The standard deviation of a random variable ‘q’.

Introduction: The absolute measurement of the risk is called as standard deviation. It is also calculated by taking the square root of the variance. The standard deviation is used to represent the deviation of observation from the mean value or average value.

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3. After discussing things with a​ bank, the family learned that they can​ (1) refinance the remaining ​$15 comma 400 amount on the vehicle 1 at 13​%, over 4​ years, (2) refinance the remaining ​$8500 loan amount on the vehicle 2 at 13​%, over 3​ years, (3) refinance the remaining ​$119 comma 900 loan amount on their home at​ 5%, over 25 ​years, and​ (4) reduce their car insurance payments by ​$30 per month. Complete the following table. ​(Round to the nearest cent as needed. Do not include the​ $ symbol in your​ answer.) Part 9Part 10Part 11Part 12Part 13Part 14 Item Current Loan Amount New Interest Rate New Term of Loan New Monthly Payment Motor vehicle 1 ​$    enter your response here    enter your response here​%    enter your response here years ​$    enter your response here Motor vehicle 2 ​$    enter your response here    enter your response here​%    enter your response here years ​$    enter your response here Home ​$    enter your response here    enter your response here​%…
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