1. Describe with practical excamples the three main decisions that a financial manager of a manufacturing business need to make with using all the tools available to him.
2. Stock A has a beta of 0.9 and a variance of 0.09 on its return. The market portfolio has a variance of 0.0625. What is the correlation coefficient between the returns on Stock A and the market portfolio?
3. Starting at age 35, Ethan deposits $500 per month into a retirement account paying 2.4%, compounded monthly. a) If Ethan retires at age 65, how much will be in the account? b) After retiring, how long will Ethan be able to withdraw $2000 per month from the account?