.If an investor has $100,000 in financial assets, and if the annual expected return of the market portfolio is 10%, and the volatility of return 25%
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3.If an investor has $100,000 in financial assets, and if the annual expected return of the market portfolio is 10%, and the volatility of return 25%, by the rule of the thumb, in seven out of ten years, the annual return is expected to be between % and % (round both figures to units). Meanwhile, once every ten years, the investor could lose more than $ (round to the thousands and no 1000 separators).
2.In a world with no taxes and no “frictions,” the value of a firm is not influenced by how the firm is financed.
TrueFalse
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Please view explanation and answer below..If an investor has $100,000 in financial assets, and if the annual expected return of the market portfolio is 10%, and the volatility of return 25%, by the rule of the thumb, in seven out of ten years, the annual return is expected to be between 7 % and 35 % (round both figures to units). Meanwhile, once every ten years, the investor could lose more than $3000 (round to the thousands and no 1000 separators).2.In a world with no taxes and no “frictions,” the value of a firm is not influenced by how the firm is financed.TRUEFALSE
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