1. Focuses on a government budget itself. Describe its basic elements, how they interact with one another, and how it can provide a useful tool for managers and citizens to hold government accountable.
2. A portfolio lies on the capital market line. It has an expected return of 10% and a standard deviation of 8%. The standard deviation of the market portfolio is 5% and the risk-free rate is 3%. What is the market risk premium?
3. An investment of $25,000 pays 7% (simple) annual interest. What will be the total value of the investment in 10 years?
4. Juan Garza invested $105,000 4 years ago at 16 percent, compounded quarterly. How much has he accumulated? Use Appendix A for an approximate answer but calculate your final answer using the formula and financial calculator methods. (Do not round intermediate calculations. Round your final answer to 2 decimal places.)