Explain the term annuity
Explain the term: annuity. How can continuous compounding benefit an investor?
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Annuity is a chain of equal cash flows that is spaced uniformly over time. The increasing affect the number of compounding periods per year is to increase the investment’s future value. If the interest is compounded very frequently, the future value will be more. The smallest number of compounding period is used when we compute continuous compounding.
Illustrates the Epstein–Wilmott model?
5. What are the factors responsible for the recent surge in international portfolio investment? plz explain in 20 marks
Why are most futures positions closed out through a reversing trade instead of held to delivery?In forward markets, about 90 percent of all contracts that are primarily established result in the short making delivery to the long of the asset und
Explain Poisson process in Brownian motion.
How is Value of a Contract solved?
How can we estimate the payback period for a proposed capital budgeting project? What are the major problems of the payback method?
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Who concluded that stock prices were unpredictable and coined the phrase ‘market efficiency’?
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