Write the Sum Using Sigma Notation $\frac { 1 } { 1 \cdot 2 } + \frac { 1 } { 2 \cdot 3 } + \frac { 1 } { 3 \cdot 4 } + \ldots + \frac { 1 } { 999 \cdot 1000 }$

question 79

Multiple Choice

Write the sum using sigma notation. $\frac { 1 } { 1 \cdot 2 } + \frac { 1 } { 2 \cdot 3 } + \frac { 1 } { 3 \cdot 4 } + \ldots + \frac { 1 } { 999 \cdot 1000 }$

• A) \(\sum _ { n = 1 } ^ { 1000 } \frac { 1 } { n ( n + 1 ) }\)
• B) \(\sum _ { n = 1 } ^ { 1000 } \frac { 1 } { n ( n - 1 ) }\)
• C) \(\sum _ { n = 1 } ^ { 999 } \frac { 1 } { n ( n + 1 ) }\)
• D) \(\sum _ { n = 1 } ^ { 1001 } \frac { 1 } { n ( n + 1 ) }\)
• E) \(\sum _ { n = 1 } ^ { 999 } \frac { 1 } { n ( n - 1 ) }\)

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Definitions:

Marginal Cost of Capital

The cost of obtaining an additional dollar of new capital, which increases as more capital is raised due to increasing risk and/or decreasing attractiveness to investors.

Investment Opportunity Schedule

A graph or listing that shows the relationship between the rates of return on investment and the amount of investment.

MCC

Marginal Cost of Capital is an economic term representing the cost of obtaining one additional unit of capital.

Financial Risk

The variation in a firm’s financial performance caused by using borrowed money (debt, leverage).