Take Home QUIZ#2 - Take Home QUIZ #2 E3050A To be handed in...

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Take Home QUIZ #2 E3050A To be handed in to my mailbox no later then December 22, 2010 All questions are worth 10 marks each The Quiz is worth 20% of your Final Mark. 1. Vincent Van Gogh sold only one painting during his lifetime, for about $30. A sunflower still life he painted in 1888, sold for $39.85 million in 1988, more then three times the highest price paid previously for any work of art. If this painting had been purchased for $30 in 1888 and sold in 1988 for $39.85 million, what would have been the annual rate of return? 2. Imagine you had been hired as a financial advisor to Michael Jordan, the world’s best basketball player. He has received two offers for playing professional basketball and wants to select the best offer, based on considerations of money only. Offer A is a “$10 million” offer for $2 million per year for 5 years. Offer B is a “$11 million” offer of $1 million per year for 4 years and $7 million” in year 5. He has told you that he needs a rate of return of 10%.
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This note was uploaded on 03/21/2011 for the course ECON 6120 taught by Professor Crabbe during the Spring '11 term at University of Ottawa.

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Take Home QUIZ#2 - Take Home QUIZ #2 E3050A To be handed in...

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