Byron is investigating a mutual fund that claims that $1,000 today will be worth $5,000 in five years. What is he solving for?
A) Present value
B) Future value
C) Interest rate
D) Payment
Answer: C
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Ecco Company has total fixed costs of $5,000, sells a product whose contribution margin is $50 and selling price per unit is $125, and has current sales of $15,000. The company's margin of safety ratio is 20%.
Answer the following statement true (T) or false (F)
James purchased an abandoned lot. When he started to develop the land, he discovered several underground storage tanks containing hazardous waste buried on the site. He claims the seller, Richard, is liable to him for the cost of removing the tanks
Richard claims he owned the lot for 20 years and never knew of the underground tanks. Richard argues he purchased the land from Thomas and that Thomas or his heirs are liable for the cost of removing the underground tanks. Explain whether Richard is liable to James. Does Thomas or do his heirs have any liability to James or Richard?
Which of the following statements about risk-return relationship is correct?
A. ?An increase in the expected inflation would lead to an increase in the required return on all the risky assets by the same amount, assuming all other things were held constant. B. ?A graph of the SML would show required rates of return on the vertical axis and standard deviations of returns on the horizontal axis. C. ?As a result of change in investors' risk aversion, the required rate of return on low-beta stocks is impacted more when compared to the required rate of return on high-beta stocks. D. ?If investors became more averse to risk, then the slope of the SML would become less steep. E. ?The market risk premium is lower for higher beta stocks and higher for lower beta stocks.
As the volume of production increases the variable cost-per unit of the product decreases
Indicate whether the statement is true or false