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Module3 - 12-5 25 0.2 5 3 12 12 0 0.3 4 15 12 3 9 0.2 1.8 5...

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GRAND CANYON UNIVERSITY Blanchard College of Business Module 3 Assignment Chapter 5 Prob #1 Principal Interest Rate/ # Years Future Value A) \$1,000.00 3 years @ 6% \$1,191.02 B) \$1,000.00 5 years @ 6% \$1,338.23 C) \$1,000.00 10 yeaes @ 6% \$1,790.85 Prob #2 Prob #3 Year Payment Interest Rate Future Value 1 \$20,000.00 9% \$21,800.00 2 \$20,000.00 9% \$45,562.00 3 \$20,000.00 9% \$71,462.58 4 \$20,000.00 9% \$99,694.21 5 \$20,000.00 9% \$130,466.69 6 \$20,000.00 9% \$164,008.69 7 \$20,000.00 9% \$200,569.48 8 \$20,000.00 9% \$240,420.73 Prob #4 Future Value Years Future Value A) \$24,594.36 1 \$1,296.00 B) \$25,180.00 2 \$2,695.68 3 \$4,207.33 4 \$5,839.92 5 \$7,603.11 6 \$9,507.36 7 \$11,563.95 8 \$13,785.07 9 \$16,183.87 10 \$18,774.58 11 \$21,572.55 12 \$24,594.36 A \$5,000 today, because money in your hand today is always better than money tomorrow.

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GRAND CANYON UNIVERSITY Blanchard College of Business Module 3 Assignment Chapter 6 Problem #1 A) rx=15% ry=12% B) X j rj r^ rj-r^ (rj-r^)2 Pj (rj-r^)2 Pj 1 -10% 15% -25% 625 0.1 62.5 2 10% 15% -5% 25 0.2 5 3 15% 15% 0% 0 0.4 0 4 20% 15% 5% 25 0.2 5 5 40% 15% 25% 625 0.1 62.5 135 Standard deviation for X 11.62% Y j rj r^ rj-r^ (rj-r^)2 Pj (rj-r^)2 Pj 1 2% 12% -10% 100 0.2 20 2 7%
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Unformatted text preview: 12%-5% 25 0.2 5 3 12% 12% 0% 0.3 4 15% 12% 3% 9 0.2 1.8 5 16% 12% 4% 16 0.1 1.6 28.4 Standard deviation for Y 5.33% C) Prob #2 r r^ o z 33.00% 22.00% 11.00%-1.67 0.00% 22.00% 11.00%-2.00 Probability of <33% 4.46% Possibility of a loss= 2.28% Prop #3 Company r o v Cornhusker Enterprise 20% 10% 0.50 Mustang Associates 15% 9% 0.60 A) B) Stock X Appears to be Riskier because possible rerurns from X are more variable, measured by its standard deviation of 11.62%, than those from stock Y, which have a standard deviation of only 5.33%. Cornhusker Enterprise returns have a lower coefficient of variation than Mustang Associates; therefore Cornhusder Enterprise is the less risky of the two investments. Then Mustang would be the lower risk and a possibly higher return. Prob #4 Beta Risk free Market risk % of Portfolio r on portfolis Treasury Bills 6% 9% 33% General Electric 1.3 67%...
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Module3 - 12-5 25 0.2 5 3 12 12 0 0.3 4 15 12 3 9 0.2 1.8 5...

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