【正文】 the relative frequency is calculated by taking the frequency divided by the total number of frequencies。 CPT PMT = 11,. Question ID: 20999 The First State Bank is willing to lend $100,000 for 4 years at a 12 percent rate of interest, with the loan to be amortized in equal semiannual payments. Given the payments are to be made at the end of each 6month period, how big will each loan payment be? A. $18,500. B. $16,104. C. $32,925. D. $25,450. B N=4x2=8。 time is 2 years。 FV=1,000。 I/Y=10。 PMT=0。 CPT PV=683 Total PV=3,636+1,653+0683=4,606 Question ID: 18503 Suppose you are going to deposit $1,000 this year, $1,500 next year, and $2,000 the following year in an savings account. How much money will you have in three years if the 8 rate of interest is 10% each year? A. $4, B. $5, C. $5, D. $6, B Future value of? $1000 for 3 periods at 10% is 1331 Future value of $1500 for 2 periods at 10% is? 1815 Future value of $2020 for 1 period at 10% is??? 2200 Total = $5346 n = 3, PV = $1000, i/yr = 10%, Compute FV = $1331 n = 2, PV = $1500, i/yr = 10%, Compute FV = $1815 n = 1, PV = $2020, i/yr = 10%, Compute FV = $2200 Question ID: 19925 The BBC Co. is evaluating an investment that promises to generate the following annual cash flows: End of Year Cash Flows 1 $5,000 2 $5,000 3 $5,000 4 $5,000 5 $5,000 6 0 7 0 8 $2,000 9 $2,000 9 Given BBC uses an 8 percent discount rate, this investment should be valued at: A. $19,963. B. $22,043. C. $27,027. D. $23,529. B Answer: PV(15): N=5。 PMT=0。 PMT=13,528。 CPT PV=$41,577. Question ID: 18492 An annuity will pay eight annual payments of $100, with the first payment to be received one year from now. If the interest rate is 12% per year, what is the present value of this annuity? 4 A. $ B. $1, C. $ D. $1, C n = 8, i/yr = 12%, PMT = $100, FV = 0, Compute PV = $ Question ID: 19919 Consider a 10year annuity that promises to pay out $10,000 per year。 CPT I/Y=. Question ID: 19378 What is the present value of a 12year annuity due that pays $5,000 per year, given a discount rate of percent? A. $36,577. B. $41,577. C. $38,676. D. $23,857. B Using your calculator: N=11。 PV=20,000。 I/Y=14。 PV=4,000。 PV=10,000。 I/Y=。 CPT FV=$159,374. Question ID: 20981 A 5year, $50,000 loan requires annual endoftheyear payments of $13,528. What rate of interest is the borrower paying on this loan (assume annual pounding)? A. %. 5 B. %. C. %. D. %. A N=5。 CPT N=. Question ID: 20985 Given investors require an annual return of percent, a perpetual bond (., a bond with no maturity/due date) that pays $ a year in interest should be valued at: A. $1,093. B. $875. C. $700. 6 D. $70. C $700. Question ID: 19381 Nortal Industries has a preferred stock outstanding that pays (fixed) annual dividends of $ a share. If an investor wants to earn a rate of return of percent, how much should he be willing to pay for a share of Nortel preferred stock? A. $. B. $. C. $. D. $. C PV=$. Question ID: 20986 The preferred shares of AWA Co. are currently trading in the market at $ a share. What rate of return are investors earning on these preferred stock, given they pay (fixed) annual dividends of $ a share? A. %. B. %. C. %. D. %. 7 A Question ID: 20989 Given the following cash flow stream: End of Year Annual Cash Flow 1 $4,000 2 $2,000 3 0 4 $1,000 Using a 10 percent discount rate, the present value of this cash flow stream is: A. $3,636. B. $2,225. C. $3,415. D. $4,606. D PV(1): N=1。 I/Y=10。PV=19,963 PV(67): 0 PV(8): N=8。 PMT=0。 FV=2,000, PMT=0。 FV=0。 I/Y=9。 n=(1)(12)=12。s mon stock over the four years? A. % B. % C. % D. % 26 A [()()(.90)()]1/4 1 = % Question ID: 18527 A stock had the following returns over the last five years: 10 percent, 22 percent, 2 percent, 26 percent, 5 percent. What is the geometric mean for this stock? A. B. C. D. B Geometric mean = ()()()()()20 –1 = – 1 = – 1 = x 100 = Question ID: 19382 Given the following annual returns, what are the population and standard deviation, respectively? 1995: 15%, 1996: 2%, 1997: 5%, 1998: 7%, 1999: 0%. A. , B. , C. , D. , 27 A The population variance is found by taking mean of all squared deviations from the mean. [ (153)2 + (23)2 + (53)2 + (73)2 + (03)2 ] / 5 = The population standard deviation is found by taking the square root of the population variance. Question ID: 19700 Assume that the following returns are a sample of annual returns for firms in the clothing industry. Given the following sample of returns, what are the sample variance and standard deviation? Firm 1 Firm 2 Firm 3 Firm 4 Firm 5 15% 2% 5% (7%) 0% A. Variance Standard Deviation B. Variance Standard Deviation C. Variance Standard Deviation D. Variance Standard Deviation D The sample variance is found by taking the sum of all squared deviations from the mean and dividing by (n1). (153)2 + (23)2 + (53)2 + (73)2 + (03)2/(51) = 28 The sample standard deviation is found by taking the square root of the sample variance. √ = Question ID: 19697 An investor has a portfolio with 10 percent cash, 30 percent bonds, and 60 percent stock. If last year’s return on cash was percent, the return on bonds was percent, and the return on stock was 25 percent, what was the return on the investor’s portfolio? A. %. B. %. C. %. D. %. C Find the weighted mean of the returns. ( x ) + ( x ) + ( x ) = % Question ID: 19380 An investor