Question 626
The probability that a mutual fund will generate a positive return in the next 12 months is called:
Question 627
Which of the following statements about the futures market are true?
I). Allows investors to hedge
II). Allows investors to speculate
III). Helps evaluate prices in the spot market
I). Allows investors to hedge
II). Allows investors to speculate
III). Helps evaluate prices in the spot market
Question 628
For a two-stock portfolio, what would be the preferred correlation coefficient between the two stocks?
Question 629
The variance of a portfolio of risky securities is
Question 630
An investor is considering a 20-unit apartment building that is 10 years old and in excellent condition.
The purchase price is $700,000 with the land being valued at $50,000. The investment will be financed using a $560,000 mortgage with the balance being equity. Estimated after-tax cash flows in years 1 through 4 are $37,806, 40,285, 42,839, and 45,468, respectively. It is estimated that the building can be sold at the end of year 4 for net after-tax proceeds of $156,686. The investor has a required rate of return of 15%. The IRR would be closest to:
The purchase price is $700,000 with the land being valued at $50,000. The investment will be financed using a $560,000 mortgage with the balance being equity. Estimated after-tax cash flows in years 1 through 4 are $37,806, 40,285, 42,839, and 45,468, respectively. It is estimated that the building can be sold at the end of year 4 for net after-tax proceeds of $156,686. The investor has a required rate of return of 15%. The IRR would be closest to: