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1-Between 1926 and 2009 the market for small company stocks was riskier than the

ID: 2658983 • Letter: 1

Question

1-Between 1926 and 2009 the market for small company stocks was riskier than the market

for large company stocks. Over this period small company stocks had returns measured by

the ggeometric average of 16.6%.

True

False


2-Burton Malkiel advocates "market timig" to earn abnormal returns.

True

False


3-settlement 1/17/2014

maturity 1/13/2034

rate 8%

price $90

redemp;on $100

frequency 2

Based on the above information what is the bond's yield to maturity?

15.2%

8%

7.78%

9.8%


4-What is the future value of an initial investment and subsequent investments based on the

following information?

rate 10%

nper 15

payment $250

present@value $500

$10.031.74

$10,000

$10,431.22

$750 x (1.1) x $1,000


5- settlement 1/13/2014

maturity 1/13/2034

rate 8%

price $120

redemp;on $100

frequency 2

Based on the above information what is the bond's yield to maturity?

5.64%

8%

8.2%

6.23%

Explanation / Answer

1. False

2. True

3. 8%