macro hw 12 - hw12 Completed 82 out of 98 points 0 hours,...

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hw12 Completed 82 out of 98 points 0 hours, 44 minutes, and 49 seconds out of 1 hours and 0 minut
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Question 1 Multiple Choice 2 of 2 points According to the rule of 72, if the interest rate is 10 percent, about how long will it take for the value of a savings account to double? Selected Answer: about 7 years Question 2 Multiple Choice 2 of 2 points According to the discounted dividends model, which of the following should INCREASE the value of a stock (r=risk adjusted discount rate, g= growth rate of dividends) Selected Answer: an increase in D or a decrease increase in g Question 3 Multiple Choice 2 of 2 points Other things the same, the size of your deposit in a saving account will rise as Selected Answer: the interest rate and the length in the bank both increase Question 4 Multiple Choice 2 of 2 points The present value of a payment to be made in the future falls as Selected Answer: the interest rate rises and the t payment is made increases. Question 5 Multiple Choice 2 of 2 points Dividends
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Question 5 Multiple Choice 2 of 2 points Selected Answer: are cash payments that compa shareholders. Question 6 Multiple Choice 2 of 2 points Which of the following is the correct way to figure the future value of $1 put in an account that earns 5 percent for 20 years? Selected Answer: $1(1 + .05) 20 Question 7 Multiple Choice 2 of 2 points What is the present value of a payment of $100 one year from today if the interest rate is 10 percent, approximately? Selected Answer: $91 Question 8 Multiple Choice 2 of 2 points Mary talked to several stockbrokers and made the following conclusions. Which, if any, of her conclusions are correct? Selected Answer: All of Mary’s conclusions are Question 9 Multiple Choice 0 of 2 points Diversification reduces Selected Answer: both market and firm-specific
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Question 10 Multiple Choice 0 of 2 points Your parents put $100 into an account paying 10 percent interest for you when you were seven. . How much will be in the account when you are 21? Selected Answer:
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This note was uploaded on 04/17/2011 for the course ECONOMICS 220 taught by Professor Clare during the Spring '08 term at Rutgers.

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macro hw 12 - hw12 Completed 82 out of 98 points 0 hours,...

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