User Account

All Pages

Which investment should he make and why

Assignment Help Finance Basics
Reference no: EM13255731

Rishi Singht has $1500 to invest. His investment counselor suggests an investment that pays no stated interest but will return $200 at the end of 3 years.

a. What annual rate of return will Rishi earn with this investment?

b. Rishi is considering another investment, of equal risk, that earns an annual return of 8%. Which investment should he make, and why?

 

Reference no: EM13255731

Questions Cloud

What is the focal length of the second lens : Two converging lenses are placed 88.0 cm apart. An object is placed 1.100 m to the left of the first lens, which has a focal length of 27.0 cm. What is the focal length of the second lens
Calculate the total magnetic flux through the cylinder : A long, straight wire carrying a current of 5.00 A is placed along the axis of a cylinder of radius 0.500 m and a length of 5.00 m
How to use to make 850.0ml of a 0.300m hno3 solution : How much of a 15.0M HNO3 solution should you use to make 850.0mL of a 0.300M HNO3 solution
Find the values of l and c and the cutoff frequencies : Design a series resonant circuit to have a bandwidth of 400 Hz using a coil with a Ql of 20 and a resistance of 2. Find the values of L and C and the cutoff frequencies.
Which investment should he make and why : Rishi is considering another investment, of equal risk, that earns an annual return of 8%. Which investment should he make, and why?
Design a circuit that will turn the oven on : Assume that an oven has an electronic thermometer attached to circuitry with two outputs: one (H) is asserted when the temperature is above h, and the other (L) is asserted when the temperature is below l. Design a circuit that will turn the oven
What is the maximum current passing through the resistor : A function generator with output V(t) = 12cos(500t)V is connected with a resistor R = b15?, What is the maximum current passing through the resistor
Explain conducted the experiment using an unknown : Fe(NO3)3, 5 drops of 0.1 M KCNS why are ions present when you mix those solutions? I also conducted the experiment using an unknown and got the same results for both.
Calculate line crurrent if the motor is operated at vac rms : consider a running motor with Z = 6 + j7 ohm A) calculate the line crurrent if the motor is operated at 120 VAC RMS B) calculate the required paralell capacitor value to reduce the line current to a minimum

Reviews

Write a Review

Finance Basics Questions & Answers

  Determine the cash conversion cycle

Determine the cash conversion cycle for a firm with $3 million average inventories, $1.5 million average accounts payable, a receivables period of 40 days

  Forecast the annual cash revenues

United Industries is about to pay a dividend of 1.35 each share. It's a mature corporation but future EPS and dividends are expected to grow with inflation, which is forecasted at 2.75% per year.

  Question on standard deviation

Investment A has an expected return of 14 percent with a standard deviation of 4 percent, while investment B has an expected return of 20% with a standard deviation of 9 percent.

  Annuity and dividends for common stocks

Morgan Jennings, a geography professor, invests $50,000 in a parcel of land that is expected to increase in value by 12 percent per year for the next five years. He will take the proceeds and provide himself with a 10-year annuity a 12 percent int..

  Find default risk premium on corporate bonds

Assume 10-year T-bonds have a yield of 5.30% and ten year corporate bonds yield 6.80%. Also, corporate bonds have a 0.25% liquidity premium versus a zero liquidity premium for T-bonds,

  Discuss on stock market movement and market inefficiency

Discuss on stock market movement and market inefficiency and Assume that no other information is received and that the stock market as a whole does not move

  Litigation-bill of rights-insurance and liability

What amendments to the Bill of Rights have had the most impact on business? What would business life be like without them?

  Diversification of stock portfolio

Suppose the following two, completely separate, economies. The expected and volatility of all stocks in both economies is the same.

  Trends in global value chain management

What are some contemporary trends in global value chain management? How does the use of a global monetary unit (e.g., Euro or single currency) affect global value chain management?

  Problem on loan repayment

Suppose your father has a mortgage loan on family home that was made several years ago when interest rates were lower. The loan has current balance of $40,000 & will be paid off in twenty years by paying $330 per month.

  Explain plotting a chart of the efficient frontier of risky

Explain Plotting a chart of the efficient frontier of risky assets and in a world where there are no risk free assets and just these three risky assets

  Manager of a cost center

If I run a call center for a software firm whose sole purpose in life involves assistng the customers install the item,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd