Consider a world in which there are only two risky assets, A and B, and a risk-free asset F. The two risky assets are in equal supply in the market; that is, the market portfolio M = 1/2 (A + B). The following information is known:

r_F = 0.10, σ_A² = 0.04, σ_ΑΒΞ = 0.01, σ_B² = 0.02, ř_M = 0.18.

(a) Find a general expression (without substituting values) for σ_M², ß_A, β_Β.
(b) According to the CAPM, what are the numerical values for ř_A and ř_B.

Annuity payments are assumed to come at the end of each payment period (termed an ordinary annuity). however, an exception occurs when the annuity payments come at the beginning of each period (termed an annuity due). what is the future value of a 13-year annuity of $2,800 per period where payments come at the beginning of each period? the interest rate is 9 percent. use appendix c for an approximate answer, but calculate your final answer using the formula and financial calculator methods. to find the future value of an annuity due when using the appendix tables, add 1 to n and subtract 1 from the tabular value. for example, to find the future value of a $100 payment at the beginning of each period for five periods at 10 percent, go to appendix c for n = 6 and i = 10 percent. look up the value of 7.716 and subtract 1 from it for an answer of 6.716 or $671.60 ($100 × 6.716)

Popeye produces 20 cans of spinach in 8 hours. wimpy produces 15 hamburgers in 10 hours. if each hamburger trades for 1.5 cans of spinach, then: a.wimpy’s production and productivity are greater than popeye’s. b.popeye’s production is greater than wimpy’s, but his productivity is less. c.wimpy’s production is greater than popeye’s, but his productivity is less. d.popeye’s production and productivity are greater than wimpy’s.

What is the relationship between credit and debt?