What are the three components of required rate of return


Investments Assignment 1

1. Name an internet financial portal.

2. Name an investment criterion you might use to screen stocks.

3. Name the most widely used stock market index.

4. What is the difference between a price weighted index and a market value weighted index?

5. Give one example of each.

6. What is a "market order"?

7. What is a "limit order"?

8. Where can you find a company's Annual Report?

9. Why is a buy-and-hold strategy generally superior to frequent stock trading?

Investments Assignment 2

1. What are the three components of Required Rate of Return?

2. Briefly explain the difference between Simple Interest and Compound Interest.

3. What is future value?

4. What is present value?

5. What is the future value of $1,000 invested at 7% for 10 years?

6. What is the present value of $2,000 received after 7 years discounted at 10%?

7. What is the future value of $1,000 invested at the beginning of each year for 20 years at 8%?

8. What is the present value of $1,000 received at the end of each year for 20 years at 8%?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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