Consider a one-year discount bond that has a present value of $3,000. If the annual rate of discount is 5 percent, calculate the future value of the bond (the amount the bond pays in one year).
What will be an ideal response?
F = $3,000 × (1 + .05) = $3,150.00
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Mutually exclusive events are:
A) events with identical probabilities. B) events that have no outcomes in common. C) events that have no effect on each other. D) events that are represented in a Venn diagram by two overlapping circles.
Which of the following is not a requirement of a linear programming problem?
A) an objective function, expressed in linear terms B) constraints, expressed as linear equations or inequalities C) an objective function to be maximized or minimized D) alternative courses of action E) one constraint or resource limit for each decision variable
What is the significance of the name preferred stock?
A. It is the type of stock that most investors would rather have. B. Its claims on dividends are paid before those of common stock. C. The overall return on preferred stock is higher than that on common stock. D. This stock is available only to select individuals associated with the company. E. This stock provides the most powerful voting rights.
A beta coefficient for a stock of 0.8 implies
A. an 8% return on the market will cause the return on this stock to be 10%. B. an 8% decrease in the market will cause the return on this stock to be 8%. C. a return of 10% on the market will cause the return on this stock to be 8%. D. a return of 10% on the market will cause the return on this stock to be ?8%.