Course Name: Principles of Finance Assignment Questions: Q1. Rami deposits $60,000 today in an account that pays 4.6% p.a. interest, compounding semi-annually. How much can be withdrawn from his account in 10 years. (Show your calculations) Q2. You invest $2000 at the end of every 6 months at a rate of 7% p.a. compounding semi- annually. How much money would you have in your account after 8 years? Q3. A portfolio consists of $100,000 in share A that yield 5% and $150,000 in share B with an expected return of 8%. Share A has a variance of 2% and share B has a variance of 3%. The covariance between returns is 0.00782. a. What is the expected return for this $250,000 portfolio? b. What is the variance of the portfolio?
Course Name: Principles of Finance Assignment Questions: Q1. Rami deposits $60,000 today in an account that pays 4.6% p.a. interest, compounding semi-annually. How much can be withdrawn from his account in 10 years. (Show your calculations) Q2. You invest $2000 at the end of every 6 months at a rate of 7% p.a. compounding semi- annually. How much money would you have in your account after 8 years? Q3. A portfolio consists of $100,000 in share A that yield 5% and $150,000 in share B with an expected return of 8%. Share A has a variance of 2% and share B has a variance of 3%. The covariance between returns is 0.00782. a. What is the expected return for this $250,000 portfolio? b. What is the variance of the portfolio?
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA3: Time Value Of Money
Section: Chapter Questions
Problem 6CE: Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions...
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Transcribed Image Text:Course Name: Principles of Finance
Assignment Questions:
Q1. Rami deposits $60,000 today in an account that pays 4.6% p.a. interest, compounding
semi-annually. How much can be withdrawn from his account in 10 years. (Show your
calculations)
Q2. You invest $2000 at the end of every 6 months at a rate of 7% p.a. compounding semi-
annually.
How much money would you have in your account after 8 years?
Q3. A portfolio consists of $100,000 in share A that yield 5% and $150,000 in share B with an
expected return of 8%. Share A has a variance of 2% and share B has a variance of 3%. The
covariance between returns is 0.00782.
a. What is the expected return for this $250,000 portfolio?
b. What is the variance of the portfolio?
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