1. Derivatives may be used for hedging and insurance. what is the difference between these two motives?
2. How many years would it take for your money to quadruple if it was invested in a bank that pays 5% interest compounded monthly? (1 year = 12 months)
3. What is the nature of a business's costs?
4. A company just paid a dividend of $1.25, and those dividends are expected to grow at a constant rate of 5% forever. The stock price of this company is $60, what is the stock’s expected dividend yield?