1. Assume the average market return over the next 50 years is expected to be 8.9%. If an investor contributes $18 thousand into an investment account today, pays 1.5% of assets under management for various fund and advisor fees, and waits for 50 years, what percentage of his final wealth has he sacrificed in fees? Enter answer in percents.
2. You are considering a project that promises you cash flows of 534 USD each year for 9 years. Based on the riskiness of the project, you require a 10 percent return. What is the maximum you should be willing to pay?
3. You observe that the spot price of the Swiss franc (CHF) is 1.14 USD/CHF, and that the 1 year forward rate is 1.07 USD/CHF. What is the percent forward premium? Enter answer as percent, accurate to 2 decimal places.