Drew Wallace Has Made Deposits at the End of Each

question 45

Multiple Choice

Drew Wallace has made deposits at the end of each year into a registered savings account for the past 10 years,with his final deposit being made today.He deposited $2500 for the first 5 years and $2000 for the last 5 years.The account earned interest at j = 8%.How much is in his account today (just after his final deposit) ? (answer to the nearest dollar)

• A)$17,967
• B)$22,652
• C)$26,400
• D)$33,283

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Definitions:

At-The-Money Call

An option contract with an exercise price that is approximately equal to the current price of the underlying asset.

Out-Of-The-Money Call

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Treynor-Black Model

A portfolio optimization model that blends active and passive investments to optimize risk-adjusted returns.

Alpha Coefficient

A measure of the performance on a risk-adjusted basis, identifying the excess return of an investment relative to the return of a benchmark index.