Two indices contain exactly the same stocks; one is a market-capitalization-weighted index that increased by 11%, whereas the other is an equal-weighted index that increased by 8% over the same period. This is explained by which of the following?   There were a large number of stock splits over the period. There were a small number of stock splits over the period. Large-capitalization stocks underperformed small-capitalization stocks. Large and small capitalization stocks performed about the same over the period. Large-capitalization stocks outperformed small-capitalization stocks

Q: A fifteen (15) year $8000 CD through Bank X pays 4.96% interest compounded weekly. A fifteen (15)…

A: Annual Percentage Rate (APR) is the nominal rate which is published on an instrument. Effective…

Q: a) Plot the payoff and profit of the following options based strategy: Buy 3 puts with strike 100,…

A: Our Strategy: Buy 3 puts with Strike price of 100 Sell 4 puts with strike price of 110 Buy 1 put…

Q: What was the firm's net income if the firm paid income taxes of $2,000 and the average tax rate was…

A: Tax rate – 25% Tax paid – 2000 Net income - ?   Tax  = income before tax* tax rate

Q: Suppose that Sara sells short 1,000 shares of Korean Fried Cucumbers (KFC), now trading at $88.45…

A: When you shot than you believe that stock prices will fall and you will purchase at lower prices to…

Q: You Answered Correct Answer Unfortunately, your project just incurred a direct cost of $25,777 for…

A: A project has incurred an additional, unplanned cost. If it intends to earn the same budgeted margin…

Q: Please Show ALL Workings VERY Clearly in FULL! GRAPHICALLY explain the Payoffs from LONG position…

A: The forward contract is a customized contract where an underlying asset is purchased or sold at a…

Q: What is the expected annual return over four years for the second strategy? Information from prior:…

A: Second Strategy Interest rate on 1 year first purchased bond "R1" is 8% Interest rate on 1 year…

Q: Ed expects to receive Php125,000 in eight years. How much is the money worth now considering an…

A: Present Value = Further Value/(1+r)n Where r =   periodic Interest rate  = 12%/6 months (bi- monthly…

Q: You are analyzing a stock. The stock's most recent dividend paid was $2.6 per share. You expect that…

A: Given The recent dividend is $2.6 per share Required return is 6%

Q: Using the CAPM theory, if the Volatility of a stock is twice as great as the market, the market…

A: Capital Asset Pricing Model (CAPM) is used to determine expected return on a particular security…

Q: Robert Campbell and Carol Morris are senior vice-presidents of the Mutual of Chicago Insurance…

A: 1. Par value bond is the amount borrowed by the issuer and repays the amount borrowed at Maturity at…

Q: Calculate for each of the following bonds the price per $1,000 of par value assuming semiannual…

A:

Q: On June 1, you borrowed $220,000 to buy a house. The mortgage rate is 8.25 percent. The loan is to…

A: Here, Amount of principal in second payment =?

Q: Ife wants to save $55,856.00. Each period, she will save twice as much as the period before,…

A: This is the case of a growing annuity and as the amount saved is doubling in each period we can say…

Q: George and Mary Keys are very excited over the news that they are to be parents. Since their…

A: A contract for insurance provides protection from losses resulting from particular calamities or…

Q: Thermo-Tech Systems recently sold a $20 million bond issue with a 20-year maturity and a coupon rate…

A: With bonds, an investor can lend money to a business or the government for a predetermined amount of…

Q: Find the quarterly payment.

A: Information Provided: Amount owed = 5000 Period = 8 years Interest rate = 10% payable quarterly

Q: You have bought property today for $600,000. You have estimated that it will provide monthly net…

A: Implied rate of return Implied rate of return helps investors understand the return on investment…

Q: Price Change         New Price

A: When yield changes, the price of the bond also changes in the opposite direction. The relationship…

Q: Determine the firm's 2021 tax liability.       Determine the firm's 2021 net income.…

A: Corporate tax is that tax which is charged on companies on their pre-tax earnings. Each nation has…

Q: Suppose Annie’s current salary is $65,000 per year, and she is planning to retire 25 years from now.…

A: The concept of time value of money will be used here. Essentially we need to determine the future…

Q: Given Principal $13,500, Interest Rate 9%, Time 240 days (use ordinary interest) Partial payments:…

A: Data given: Principal=$13500 Interest rate=9% Time=240 days  Partial payment on 100th day=$3800, On…

Q: Draw the Cash Flow Diagram for your car (or on of your family member's car). Assume the following:…

A: It indicates that core operations are bringing in revenue and that there is sufficient cash on hand…

Q: Stephanie Carter has been gifted a sum of $50,000 by her grandparents on completing her graduation…

A: Stephanie Carter has tried to put together her investment philosophy and the possible investment…

Q: Part A.  The current 10 year treasury note is approaching the important threshold of: a) 2.75% b)…

A: Since you have posted multiple question , we will solve first question for you. If you want any…

Q: USE 4 DECIMAL PLACES Nominal Rate 5% compounded semi annually 5% compounded quarterly 5% compounded…

A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a…

Q: You are evaluating a company's stock. The stock just paid a dividend of $1.75. Dividends are…

A: The Fair present value of stock is calculated by Gorden's Model. As per Gorden's Model the price of…

Q: Suppose Josh’s current salary is $72, 000 per year, and she is planning to retire 25 years from now.…

A: The FV of a payment series determines the value that the asset has at the time of maturity…

Q: If a preferred stock from Ecology and Environment, Inc. (EEI) pays $8.50 in annual dividends, and…

A: Dividend - This is the amount which is paid by the company to its shareholders. Dividend includes…

Q: All outcome between a loss of -$60 million to a gain of $140 million are equally likely on a one…

A: The outcomes on a portfolio are uniformly distributed. We have to calculate the 99% VaR. VaR…

Q: The 2017 balance sheet of Dream, Inc., showed current assets of $1,320 and current liabilities of…

A: Here, To Find: Change in net working capital =?

Q: What is the present value of $876.89 if we discount it by 0.09 for one year (remember the equation…

A: Present Value refers to a concept that states the discounted value or say value at today's time of…

Q: 6. Find the monthly amortization for a loan of Mr. Frederick Dizon amounting to P750,000 to be paid…

A: a. Periodical rate of interest: Since the loans will be paid off in EMIs, the monthly interest rate…

Q: The effective annual yield on a one-year zero coupon bond is 8% and the effective annual interest…

A: Bonds with zero coupons do not accrue interest throughout the course of their lifetime. Rather,…

Q: You are bullish on Zhu Que, Incorporated. You invest $10,000 of your own money and borrow $10,000…

A: The investor takes a leveraged buy position in a stock. We have to find the (a) number of shares the…

Q: Suppose Tyler initially pays $76,000 toward the purchase of $108,000 worth of stock, borrowing the…

A: Initial margin percentage is the percentage of purchase price of stock that must be used as…

Q: Suppose the asking price for a certain stock is $75 per share, the bid price is $74 per share, the…

A: A forward contract, often known as a forward, is a non-standard contract between two parties to buy…

Q: You borrow a five-year $13,000 loan with monthly payments of $250. What is the annual percentage…

A: To Find: APR

Q: Based on the free cash flow valuation model, Advanele Corp, calculates that the value of their…

A: Given, The value of operations is $874,000 Number of shares outstanding is 283,000

Q: ln October 2015, in an unexpected move, global technology giant Google lnc (Google) restructured…

A: Solution:  In the event that Google intends to consolidate its offers in 2015, in case it is done to…

Q: Harmon just turned 67 years old. His AIME is $5,197. Harmon's wife, Lolita, also just reached age 67…

A: We know the AMIE and the bend points. We have to find the PIA amount and then the monthly retirement…

Q: initial base: 600,000 annual growth: 85% number of years: 2 Find the growth estimate

A: We have to apply the CAGE formula to quantify the growth over a given time horizon.

Q: World Bank data on a developing country shows per capita incomes of $4,500 for urban residents and…

A: Per capita income of urban residents (Ui) = $4500 Growth rate in urban (gU) = 0.03 Per capita income…

Q: The sum P350,000 will be needed at the end of 3 years. If money can be invested at 5% compounded…

A: We need to fist determine the semi annual end of period payment that will accumulate to the desired…

Q: a) Explain the meaning of the terms contango market and normal backwardation market with respect to…

A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…

Q: Find the accumulated value of an investment of $20,000 for 5 years at an interest rate of 4.5% if…

A: Initial investment (I) = $20,000 Interest rate = 0.045   Accumulated value is the compounded value…

Q: Calculate the net present value (NPV) before tax of investment A: a factory. Base your calculation…

A: 1) Initial Cash outflow : Investment at Quarter 0 is 100,000, So, Quater 0, Cash outflow is 100,000.…

Q: Suppose you purchase eight call contracts on Macron Technology stock. The strike price is $60 and…

A: Value of call option = Max(0,ST-K) Where, ST is stock price as time T K is strike price Net profit…

Q: Rebalancing of an index will occur most frequently for a(n):   Price-weighted index. Equal-weighted…

A: A Stock market index is used as a barometer of market behaviour. It reflects price movements of…