Innis Consulting Group Investments Manages Funds

Answer for Innis consulting group Investments manages funds for a number of companies and wealthy clients for $5 Only

Innis Consulting Group

Investment Problem

3. Innis consulting group Investments manages funds for a number of companies and wealthy clients. The investment strategy is tailored to each client’s needs. For a new client, Innis has been authorized to invest up to $1.2 million in two investment funds: a stock fund and a money market fund. Each unit of the stock fund costs S50 and provides an annual rate of return of S5 per dollar invested; each unit of the money market fund costs $100 and provides an annual rate of return of S4 for each dollar invested.

FIN 534 Quiz 3

 FIN 534 Quiz 3 (30 questions) (Instant Download)

FIN/534 Quiz 3 (30 questions)

Question 1
Which of the following statements is CORRECT?
Answer

The cash flows for an ordinary (or deferred) annuity all occur at the beginning of the periods.

If a series of unequal cash flows occurs at regular intervals, such as once a year, then the series is by definition an annuity.

The cash flows for an annuity due must all occur at the ends of the periods.

The cash flows for an annuity must all be equal, and they must occur at regular intervals, such as once a year or once a month.

If some cash flows occur at the beginning of the periods while others occur at the ends, then we have what the textbook defines as a variable annuity.

Question 2