1.You are considering purchasing a new automobile that will cost you $28,000. The dealer offers you 4.9% APR financing for 60 months (with payments made at the end of the month). Assuming you finance the entire $28,000 and finance through the dealer, your monthly payments will be closest to __________. (Points : 10)

Question 2.2.Floyd Ferris invested $3,000 into an account five years ago. Today his account has grown to have a balance of $3,927.50. Given that his account offered monthly compounding of interest, the APR on this account is was closest to __________. (Points : 10)

Question 3.3.Which of the following statements is false? (Points : 10)

Question 4.4.If the current inflation rate is 4% and you have an investment opportunity that pays 10%, then the real rate of interest on your investment is closest to __________. (Points : 10)

Question 5.5.Which of the following statements is false? (Points : 10)

Question 6.6.The CAPM does not require investors have homogeneous expectations, but rather that they have: (Points : 10)

Question 7.7.The tendency to hang on to losers and sell winners is known as the: (Points : 10)

Question 8.8.The tendency of uninformed individuals to overestimate the precision of their knowledge is known as: (Points : 10)

Question 9.9.Which of the following statements is false? (Points : 10)

Question 10.10.ChihuahuaCorporation is expected to pay a $1.5 million dollar dividend every year in perpetuity. It has a cost of capital of 15%. Assume that the market portfolio is not efficient. Chihuahua has an expected return of 12%. The market value for Chihuahua is closest to __________. (Points : 10)