How might it impact investor stock selection decisions

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Reference no: EM131962353

1. You save $8,000 every year for 40 years with your retirement plan. If the interest rate is 7%, how much money can you receive from this plan when you retire? (future value annuity)

2. You can get the same 30-year mortgage of $130,000 at 3.6% interest by paying 2 points at closing. How much would you have to come up with to cover the 2 points?

3. What is the intent of the CAPM? What is it trying to tell investors and how might it impact an investor's stock selection decisions?

Reference no: EM131962353

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