p.s she left her emial open
Having a hard time with these 3 practice questions. Thank you!
A woman wants to retire in 8 years. At that point, she wants to purchase an annuity that will pay her $1,000 per year for 8 years. How much must she deposit today to buy the annuity. Assume that the discount rate is 5%
A company is considering a project to save $6 mn per year indefinitely. The project takes a $20mn investment immediately. The cost of capital is 4%. What is the value of this investment? Should the company undertake the investment?
A two stock portfolio has 30% in Stock A, with an expected return of 21% and a standard deviation of 5%. The rest is in Stock B, with an 18% expected return and a standard deviation of 2%. The correlation coefficient is 0.6. What is the standard deviation for the portfolio?
