Q.1. Ram borrowed $9000 at 7%. He pays $1100 in 2 months, $250 in 5 months, and $1300 in 7 months. What is the balance due in 10 months?
Q.2. Hari was supposed to pay $1460 to Sam on March 2. Some time later Hari paid Sam an equivalent payment of $1552.84, allowing for a time value of money of 3.9% compounded monthly. When did Hari make the payment?
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Cheri Finance Assingment Help With Solution
Cheri Finance Assingment Help With Solution
1. Suppose E[rA] = 2%, E[rB] = 4%, σA = 10%, σB = 10%, and ρAB = +0.50 for the returns of two assets A and B.
a. Calculate the standard deviation of an equally weighted portfolio of the two stocks.
b. Given a CAPM world, how can these assets have a different expected return even though σA = σB = 10%?
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