Hints for 8-9 and 8-23
Here, I used similar but slightly different examples to show how to solve 8-9 and 8-23.
8-9
In this problem I used Excel as a calculator.
probability
0.3
0.4
0.3
r(M)
15
9
18
r(J)
20
5
12
Exp Ret
SD
CV
13.5
3.85
0.29
11.6
6.22
0.54

Jesse Seaver Helms
FINA 51.521
HMWK CH 3 and 5
11/10/15
CHAPTER 3 ST-1
a) Informational Efficiency the prices of investments reflect existing information and adjust
quickly when new information enters the markets.
Economic Efficiency funds are allocated t

Jesse Seaver Helms
FINA 51.521
11/12/15
Chapter 4 Homework
5) Which amount is worth more at 14 percent: $1,000 in hand today or $2,000 due in six year?
$1,000 today is worth more because the PV of $2,000 at 14% over six years is $911.17, which is less tha

Jesse Seaver Helms
12/3/15
Foundations of Finance
Chapter 6 and 7 Homework
6-6
a) TTM 10 years Par - $1000 Coupon 10% ($50 payments) r 6% after two years
N = (10 x 2) (2 x 2) = 16
I = 6% x .5 = 3
PMT = $100 x .5 = 50
FV = 1000
PV = solve
PV = $1,251.22
b)