What is the yearly interest rate being offered by the dealer

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Reference no: EM131985603

1. The return on the risky portfolio is 15%. The risk-free rate, as well as the investor's 2) borrowing rate, is 10%. The standard deviation of return on the risky portfolio is 20%.

If the standard deviation on the complete portfolio is 25%, the expected return on the complete portfolio is

2. A businessman wants to buy a truck. The dealer offers to sell the truck for either $120,000 now, or 7 yearly payments of $21,040, with the first payment one year after the purchase of the truck.

What is the yearly interest rate being offered by the dealer? (to the? customer)?

Reference no: EM131985603

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