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Re: Forum One

In:

Submitted By Midship
Words 299
Pages 2
Chapter 5.

5.1 - $53,973.12
5.9 - $16,109
5.15 - Bank
5.16 - 9 years (8 years will be $298.88; not exactly doubled yet)
5.20 - a. $5,232.09 b. $3,934.68 c. $6,067.86 d. $3,374.51 e. $2,933.78

Chapter 6.

6.1 - $9,722.24 - $11,474.55 - $13,943.52 - $19,114
6.4 - $38,652.76
6.5 - $5,747.40
6.13 - $4,221.07

Chapter 7.
7.2 - $1,912.50 & & $3,052.74
7.6 - An investor can reduce the risk of his or her investments by investing in two or more assets whose values do not always move in the same direction at the same time. This is because the movements in the values of the different investments will partially cancel each other out.
7.9 - Since the beta of any asset is the slope of the line of best fit for the plot of an asset against that of the market return, then we can use that logic to help us understand the beta of a T- bill. If we purchased a T-bill five years ago and held the same T-bill through each of the last 60 months, then the return for each of those 60 months would be exactly the same. Therefore, the vertical axis coordinates of each of the monthly returns would have the same value and the slope (beta) of the line of best fit would be zero. The meaning of a beta of zero means that our T-bill has no systematic risk. That is logical given that we know that a T-bill has no risk at all since it is a riskless asset.
7.16 - 0.00773 &

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