Fin111 week 12

Question 3 A good stock-based mutual fund should earn at least 10% per year over a long period of time. Consider the case of Qies and Moneeb, who were overheard gloating (for all to hear) about how will they had done with their mutual fund investment. "We turned a 25,000$ investment of money in 1982 into 100,000$ in 2007". - What return (interest rate) did they really earn on their investment?

Years 1 2 3 4 5 6 14 7 13 12 4. Make a decision table using the calculations above. Which investment will the advisor recommend if his client is near retirement Fund X Return % 15 24 -3 5 20 -2 Fund Y Return % 8 11 6 9 -2

Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio, Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision. Alternatives Answer Mutual Fund Stock Market CDs ➤ Bonds Payoff Table Good Economy 900 5,500 1,800 550 Step 1 of 2: What should Monique's decision be using the Hurwicz Criterion strategy and an à = 0.55? O Mutual Fund OOO State of Nature Fair Economy Poor Economy O Stock Market O CDs 650 4,900 880 440 O Bonds 440 3,100 630 165 Tables Keypad Keyboard Shortcuts

Monique Gonzales just graduated and was hired by a new cybersecurity firm in Colorado. She needs to set up her retirement plan portfolio. Monique has completed the following payoff table for different investment options and estimated the potential profits that could be realized in one month. Monique can use the Hurwicz Criterion strategy to make her decision.Payoff Table   State of Nature Alternatives Good Economy Fair Economy Poor Economy Mutual Fund 1,0001,000 650650 270270 Stock Market 6,5006,500 4,7004,700 3,3003,300 CDs 1,5001,500 850850 710710 Bonds 650650 270270 205205   Step 2 of 2:  What is Monique’s potential payoff based on the the Hurwicz Criterion strategy and an α=0.35α=0.35?

INTEREST RATE DETER MINAT ION Maria Juarez is a professional tennis player, and your firm manages her money. She has asked you to give her information about what determines the level of various interest rates. Your boss has prepared some questions for you to consider.a. What are the four most fundamental factors that affect the cost of money, or the general level of interest rates, in the economy?b. What is the real risk-free rate of interest (r*) and the nominal risk-free rate (rRF)? How are these two rates measured?c. Define the terms inflation premium (IP), default risk premium (DRP), liquidity premium (LP), and maturity risk premium (MRP). Which of these premiums is included in determining the interest rate on (1)short-term U.S. Treasury securities, (2) long-term U.S. Treasury securities, (3) short-term corporatesecurities, and (4) long-term corporate securities? Explain how the premiums would vary over timeand among the different securities listed.d. What is the term structure of…

Dont uplode image in answer,   USE BAII Plus Financial Calculator to solve the TVM questions. $_____________You would like to start saving for retirement. Assuming you are now 22 years old and you want to retire at age 60, you have 38 years to watch your investment grow. You decide to invest in the stock market, which you expect it to earn about 6% per year into the future. You decide to invest $600 at the end of each month for the next 38 years (456 months). Calculate your accumulated investment at the end of 38 years. (Round to nearest whole dollar)

(Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay you $3,000 in 34 years. a. If the appropriate discount rate is 8 percent, what is the present value of this investment? b. Assume these investments sell for $773 in return for which you receive $3,000 in 34 years. What is the rate of return investors earn on this investment if they buy it for $773? a. If the appropriate discount rate is 8 percent, the present value of this investment is $ 219.13. (Round to the nearest cent.) b. The rate of return investors can earn on this investment if they buy it for $773 is %. (Round to two decimal places.)

(Related to Checkpoint 5.6) (Solving for) You are considering investing in a security that will pay you $4,000 in 32 years. a. If the appropriate discount rate is 8 percent, what is the present value of this investment? b. Assume these investments sell for $1,515 in return for which you receive $4,000 in 32 years. What is the rate of return investors earn on this investment if they buy it for $1,515? a. If the appropriate discount rate is 8 percent, the present value of this investment is $ (Round to the nearest cent.) ||| <

JUST NEED SUBPARTS D AND E   You are trying to decide how much to save for retirement. Assume you plan to save $4,000 per year with the first investment made one year from now. You think you can earn 7.0​% per year on your investments and you plan to retire in   29 ​years, immediately after making your last $4,000 investment. a. How much will you have in your retirement account on the day you​ retire? b.​ If, instead of investing $4,000 per​ year, you wanted to make one​ lump-sum investment today for your retirement that will result in the same retirement​ saving, how much would that lump sum need to​ be? c. If you hope to live for 28 years in​ retirement, how much can you withdraw every year in retirement​ (starting one year after​ retirement) so that you will just exhaust your savings with the 28th withdrawal​ (assume your savings will continue to earn 7.0​% in​ retirement)? d.​ If, instead, you decide to withdraw $70,000 per year in retirement​ (again with the first withdrawal one…

(Related to Checkpoint 5.6) (Solving for ) You are considering investing in a security that will pay you $4,000 in 28 years a. If the appropriate discount rate is 12 percent, what is the present value of this investment? b. Assume these investments sell for $2,229 in return for which you receive $4,000 in 28 years. What is the rate of return investors earn on this investment if they buy it for $2,229?

Economics Your friend is inviting you to this exciting investment opportunity. To get in it costs 10,000 today but you will get 10,500 at the end of the year. a) What is the Internal Rate or Return of the investment opportunity? b) Suppose that the risk-free government bond rate is 5 percent. Should you still invest with your friend?

II. Instead of buying insurance for retirement, you decided to set aside some savings in the bank. You believe that saving money in the bank is safer and more convenient than buying insurance. A)IfyouinvestOMR15,000nowat10%compoundedannually,howmuchwillbeinyouraccount after 20 years?    B)IfyouinvestOMR15,000nowat10%compoundedquarterly,howmuchwillbeinyouraccount after 20 years? C)Discussthefactorswhatwillincreasethefuturevalueoftheamount.

Solve step by step using excel: Upon starting your new job after college, you've been confronted with selecting the investments for your 401(k) retirement plan. You have four choices for investing your money: A money market fund that has historically returned about 1% per year. A long-term bond fund that has earned an average annual return of 4.5%. A conservative common-stock fund that has earned 6.5% per year. An aggressive common-stock fund that has earned 9.0% per year. If you were to contribute $5,500 per year for the next 35 years, how much would you accumulate in each of the above funds? Now, change your worksheet so that it allows for less than annual investments (monthly, biweekly, etc.). The annual investment will be the same, but it will be made in smaller, more frequent, amounts. Set up a scenario analysis that shows your accumulated value in each fund if you were to invest quarterly, monthly, biweekly, and weekly. Create a scenario summary of your results. What relationship…

1. Cost of money Everyone uses money, and it is important to understand what factors affect the cost of money. Consider the following scenario: A friend comes to you and asks you to invest in his business instead of investing in Treasury bonds. You think he has a good business model, so you tell him you are willing to invest as long as the expected return on the investment is at least four times the return you would have received on the Treasury bonds.   Determine which of these fundamental factors is affecting the cost of money in the scenario described: Risk   Inflation   Time preferences for consumption

Question A A hedge fund manager pursuing a high-risk portfolio construction strategy is least likely to invest in:     A.    Fixed income security issued by a municipality.    B.    52-week Treasury bill.    C.    Shares of stock in a financial institution.    D.    An apartment building.  Full explain this question and text typing work only     We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.    .  Fast