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.
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Explain in brief capital rationing? What are reasons that a firm should practice capital rationing?
Describe a full definition of arbitrage. Arbitrage can be described as the act of simultaneously buying & selling the similar or equivalent assets or commodities for the reason of making certain, guaranteed pro
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1)What 3 items of important information does the income statement reveal about the financial performance of the company over the last three years?
Who concluded that stock prices were unpredictable and coined the phrase ‘market efficiency’?
What are the Forward and Backward Equations?
Describe how the advent of the euro would influence international diversification strategies. As the euro-zone will have the similar monetary and exchange-rate policies, the correlations between euro-zone markets a
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