Reference no: EM133234267

Assignment - Business Finance Questions

Q1) Define systematic and unsystematic risk. What method is used to measure a firm's market risk?

Q2) To pay for your child's education, you wish to have accumulated $15,000 at the end of 15 years. To do this, you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay 6 per-cent compounded annually, how much must you deposit each year to reach your goal?

Q3) On December 31, JohnFischer bought a yacht for $100,000, paying $20,000 down and agreeing to pay the balance in 10 equal end-of-year installments at 12 percent interest on the declining balance. How big will the annual payments be?

Q4) Fitsport's television ads say you can get a fitness machine that sells for $999 for $33 a month for 36 months. What APR are you paying on this fitness machine loan?

Q5) Dr. Frank was already thinking of retirement when he graduated university 35 years ago. Since then, he has made deposits into his retirement fund on a quarterly basis in the amount of $600. Memon has just completed his final payment and is at last ready to retire. His retirement fund has earned a 11 percent APR compounded quarterly. a. How much has Memon accumulated in his retirement account? b. In addition to his deposits 20 years ago, Memon received an inheritance check for $22,500 from his beloved uncle. He decided todeposit the entire amount into his retirement fund. What is his current balance in the fund?

Q6) Below you have been provided historical prices for Daimler AG and the DAX index.

a. Calculate the monthly holding-period returns for Daimler and the DAX Index.

b. What are the average monthly returns and standard deviations for each?

c. Graph the Daimler returns against the DAX Index returns.

d. Use a spreadsheet to compute the slope of the characteristic line.

e. Interpret your findings.