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A mutual fund manager expects her portfolio to earn a rate of return of 14% this year. The beta of her portfolio is .8. Assume rate of return available on risk-free assets is 7% and you expect the rate of return on the market portfolio to be 17%.
a. Calculate the expected rate of return that investors will demand of the portfolio.
Expected rate of return %
b. Should you invest in this mutual fund?
Yes
No
A Navy petty officer needs cash and goes to a paycheck advance company for some money. He/she agrees to pay $550 in two weeks (when his/her paycheck arrives) in exchange for $500 today. What is the interest rate implicit in this loan?
What's the future value of a 4%, 5-year ordinary annuity that pays $700 each year? Round your answer to the nearest cent. If this was an annuity due, what would its future value be? Round your answer to the nearest cent.
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it may surprise you to know that wal-mart the worlds largest retailer failed in its attempt to enter the german market.
Reversing Rapids Co. purchases an asset for $152,582. This asset qualifies as a five-year recovery asset under MACRS. The five-year expense percentages for years 1, 2, 3, and 4 are 20.00%, 32.00%, 19.20%, and 11.52% respectively. Reversing Rapids has..
You take out a loan for $16101 that has equal nominal annual payments over the next five years. The real rate of return on the loan is 3.9%, and the annual inflation rate is 2.1%. What will the payments be?
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