Practice Problems: Venter Financial

[Ceej]

Here you go guys. I could only muster up five problems, so if anyone else would like to jump in with cool problems that would be wonderful.

Ohs, two problems join in concepts from other papers - this was my attempt at being "creative" and I actually think they aren't super far-fetched.

[TwoStep]

What formula did you use for 3a?

[Ceej]

Woops! I totally didn't mean to keep the standard d in the actual problem I'll have to find the file to make edits when I get home.

standard d =SQRT(w^2/(u*(2-u)))
correlation = 1 - u

note that v in the problem is monthly rate in % where as I reported the annual rates as not in decimal form. Sorry for the confusion.

annual rate = (1+v/100)^12 -1