1. Can somebody explain to me how to calculate the DEAR for a portfolio? Specifically, if you're trying to calculate the DEAR of a portfolio for up to 4 years (and don't have access to interest rates past 4 years), but you have a 10 year Housing Loan included in the portfolio?
2. The cost of capital for a project depends primarily on the:
source of the funds used for the specific project.
firm's overall source of funds.
current tax rate.
use of the funds.
3. Norite Co. has the annual returns of 12%, -6%, and 13% in the past three years. What is its geometric average annual return for the past three years?
6.33 percent
7.16 percent
5.96 percent
8.56 percent