IMANET Exam CMA Topic 2 Question 83 Discussion

Actual exam question for IMANET's CMA exam

Question #: 83
Topic #: 2

[All CMA Questions]

A feasible portfolio that offers the highest expected return for a given risk or the least risk for a given expected return is a (n)

AOptimal portfolio

BDesirable portfolio

CEfficient portfolio

DEffective portfolio

Show Suggested Answer

Suggested Answer: B

If the 8% return exactly equals the present value of the future flows ., NPV is zero), then simply determine the present value of the future inflows. Thus, Hopkins Company's initial cash outlay is $19,090 [($2,500)(PVIFA at 8% for 10 periods) + ($5J00)(PVlF at 8% for 10 periods ($2,500)(6.710) + ($5,000)(.463)].

by Alline at Mar 21, 2024, 12:57 PM

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