Kathleen has two investment opportunities. She can invest in The Sunglasses Company or the Umbrella Company. She estimates there is a 50% chance it will remain sunny and Sunglasses Co. stock will rise 25% and Umbrella Co. stock will stay flat. She also estimates there is a 50% chance it will rain and Sunglasses Co. stock will remain flat and Umbrella Co. stock will rise by 75%. If she diversifies her investment by putting 50% of her money in each company, what is the expected return and standard deviation of her portfolio? The expected return is 28.75% and the standard deviation is 10.87% O The expected return is 25.00% and the standard deviation is 12.50% O The expected return is 25.00% and the standard deviation is 10.87% O The expected return is 28.75% and the standard deviation is 12.50% O The expected return is 21.74% and the standard deviation is 10.87%

Mrs. John wants to take the next three years off work to travel around the world. She estimates herannual cash needs at $20,000. Mrs. John believes she can invest her savings at 10% until she depletesher funds. Table factor at 10% is 4.883 and at 7% is 4.152To find out how much she should invest now to fund her future cash flow if she invests at 10%. Or whatto invest if only earn 7 %.( Present value of annuity)

Misty needs to have ​$20,000 at the end of 6 years to fulfill her goal of purchasing a small sailboat. She is willing to invest a lump sum today and leave the money untouched for 6 years until it grows to ​$20,000​, but she wonders what sort of investment return she will need to earn to reach her goal. Use your calculator or spreadsheet to figure out the annually compounded rate of return needed if she can invest ​$13,900 today.

Frank Zanca is considering three different investments that his broker has offered to him. The different cash flows are as follows: End of Year A 1 $300 B C $400 2 $300 3 $300 4 $300 $300 $600 5 $300 6 $300 $300 $300 $600 7 8 Because Frank only has enough savings for one investment, his broker has proposed alternative C to be, according to his expertise, "the best in town." However, Frank questions his broker. Calculate the present value of each investment, assuming a 15% discount rate. Which is Frank's best alternative? Select one: a. Investment A O b. Investment B c. Investment C O d. He should not invest in any of the suggested investments O e. All of the investments are equally good

Suppose Clinton decides to use $9,500 currently held as savings to make a financial investment. One method of making a financial investment is the purchase of stock or bonds from a private company. Suppose Arcadia, a biomedical research firm, is selling stocks to raise money for a new lab. This practice is called finance. Buying a share of Arcadia stock would give Clinton the firm. In the event that Arcadia runs into financial difficulty, will be paid first. Suppose Clinton chooses to buy 250 shares of Arcadia stock. Which of the following statements are correct? Check all that apply. The Dow Jones Industrial Average is an example of a stock exchange where he can purchase Arcadia stock. Expectations of a recession that will reduce economywide corporate profits will likely cause the value of Clinton's shares to decline. The price of his shares will rise if Arcadia issues additional shares of stock. Alternatively, Clinton could undertake their financial investment by purchasing bonds…