Question 576
An unrealized holding gain on a trading investment is recorded as
Question 577
Andrea Palmer has saved 25,000 in her bank account. She is thinking of moving it to a money market account that pays a fixed 3.75% stated annual rate, compounded monthly. If Andrea continues to save 600 per month for the next three years, every month-end from her salary, how much money will she have after three years?
Question 578
You are studying the finances of a life insurance company. You believe that if Company X generates at least $150 million in earnings this year, they will pay a large amount of stock into a company bonus pool.
If the earnings can fall anywhere from $110 million to $165 million with equal probability, what is the likelihood they will hit the bonus pool target?
If the earnings can fall anywhere from $110 million to $165 million with equal probability, what is the likelihood they will hit the bonus pool target?
Question 579
On January 1, 2000 the Trading Co. had 487,500 shares of common stock outstanding. During 2000 it had the following transactions that affected the common stock account:
February 1 Issued 141,000 shares
*
March 1 Issued 10% stock dividend
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May 1 Acquired 142,000 shares of treasury stock
*
June 1 Issued a 3-1 stock split
*
October 1 Reissued 79,000 shares of treasury stock
*
Determine the weighted average number of shares outstanding as of December 31, 2000.
February 1 Issued 141,000 shares
*
March 1 Issued 10% stock dividend
*
May 1 Acquired 142,000 shares of treasury stock
*
June 1 Issued a 3-1 stock split
*
October 1 Reissued 79,000 shares of treasury stock
*
Determine the weighted average number of shares outstanding as of December 31, 2000.
Question 580
Which of the following statements regarding the efficient frontier are incorrect?
I). Efficient frontier represents that set of portfolios that provides the maximum rate of return for every given level of risk.
II). Efficient frontier provides the maximum risk for each level of return.
III). Points along the efficient frontier dominate all points beneath the curve.
IV). Points along the curve to the right of any other point on the curve must have a higher expected return and higher level of risk.
I). Efficient frontier represents that set of portfolios that provides the maximum rate of return for every given level of risk.
II). Efficient frontier provides the maximum risk for each level of return.
III). Points along the efficient frontier dominate all points beneath the curve.
IV). Points along the curve to the right of any other point on the curve must have a higher expected return and higher level of risk.