Finance

You are going to invest all of your funds in one of three projects wit

You are going to invest all of your funds in one of three projects with the following distribution of possible returns: PROJECT 1 PROJECT 2 Probability Return Standard Deviation Beta Probability Return Standard Deviation Beta 50% Chance 22% 12% 1.1 30% Chance 36% 19.5% 1.0 50% Chance -4% 40% Chance 10.5% 30% Chance -20% PROJECT […]

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Date: September 19th, 2020

Wheeler Corporation had retained earnings as of 12/31/10 of $15 millio

Wheeler Corporation had retained earnings as of 12/31/10 of $15 million. During 2011, Wheeler’s net income was $7 million. The retained earnings balance at the end of 2011 was equal to $20 million. Therefore, A) Wheeler paid a dividend in 2010 of $5 million. B) Wheeler purchased treasury stock in 2010 for $2 million. C) […]

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Date: September 19th, 2020

David has a Homeowners 3 policy that provides $280,000 of insurance on

David has a Homeowners 3 policy that provides $280,000 of insurance on his dwelling, which has a current replacement value of $400,000. Ignoring any deductible, how much will David collect if a roof with a replacement value of $16,000 but an actual cash value of $10,000 is destroyed in a fire? A) $10,000 B) $12,000 […]

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Date: September 19th, 2020

You are thinking of adding one of two investments to an already well-

You are thinking of adding one of two investments to an already well- diversified portfolio. Security A Security B Expected Return = 14% Expected Return = 16% Standard Deviation of Standard Deviation of Returns = 16% Returns = 20% Beta = 1.2 Beta = 1.2 If you are a risk-averse investor, which one is the […]

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Date: September 19th, 2020