1. An investor will be working for 40 years and has $10.,0o0. For 20 yearsin reiremes Cage 65 to 85 he can carn S%. He wishes to withdraw $200 ,0001 year while in retirement. He will contribute $10,000 annually while working How much muss while working?
2. The stock beta is 1.3, return on the market is 10%, treasury rate is 4.%. The actual return is 1 1V%. Interpret the performance and provide necessary numbers..
3. An investor purchasing a British consol is entitled to receive annual payments from the British government forever. What is the price of a consol that pays $125 annually if the next payment occurs one year from today? The market interest rate is 3.9 percent.