You are 31 years old and you have come to the realization that you need to begin saving for retirement. Including your employer’s matching contribution, you plan to save $450 per month. You have selected the “growth” in the 401(k) and are looking for 8.0% average annual returns. You are curious what retirement balance you might be able to accumulate. How much more money could you accumulate by age 67 versus at age 62? State your answer as a dollar amount with two decimal places. (HINT: put N, I/Y, and PMT all on monthly terms). 

You own shares of a stock that has been steadily rising over the past two months. This stock (and the broader market) may have risen a little too high too fast. You want to enter a trade that enables you to continue to profit if the stock’s price rises further but protects your downside too. You want this to be a “dynamic protection” that will protect more of your profits if the stock rises from the current price level before it eventually takes a plunge. What type of order should you place right now?

Stephanie is 25 years old and plans to work until age 70. She has student loans, a car payment, a cell phone bill, and shared apartment costs with two other girls. She tends to be very conservative (and cautious) in her choices. Which option below is the best place for Stephanie to begin her investment allocation as she opens her first retirement savings account?

Which mental processing error often compounds the effect of overconfidence?

I certify that this assessment represents my un-assisted efforts. I also certify that I have complied with Penn State Academic Integrity Policies and have not used either a website or another person to obtain answers for this assessment. I further understand that failure to comply with Penn State Academic Integrity Standards may result in a grade of zero on this assessment, a grade of “F” in this course, and/or an Academic Integrity violation on your academic record depending upon the severity of the infraction.  

NASA engineer Rajeet has been asked to apply program analysis to check for null pointer exceptions in software that will control NASA’s next billion-dollar space mission, where a program with a pointer error could lead to catastrophic failure. Should Rajeet use a sound analysis, a complete analysis, or is either equally acceptable?

Connor McDavid is the greatest hockey player of all time….and because he is so awesome, the Oilers have paid him a lot of money.  Connor has been very smart in saving some of that money, knowing that he might not play hockey forever.  Connor has set aside $2,000,000 of cash in his bank account thinking he might be able to invest it to earn a few extra bucks.  He expects that he should be able to earn 30% (per annum) on his ideas. Connor is trying to decide what might be best for him to invest in.  He doesn’t know much about venture investing so he has decided to hire FNCE4415 students at NAIT to help him do the assessments.  The three opportunities he is considering are below: Opportunity Estimated Annual Revenue Multiple Anticipated time to Exit Hockey Pool Tracking App $10,000,000 3x 3 years McDavid’s Musical Toothbrushes $7,000,000 4x 6 years McDavid Hair Salon $5,000,000 5x 4 years If Connor wants to achieve his desired rate of return, how much equity should he take in McDavid’s Hair Salon, assuming that he only chooses to invest $1,000,000.

In relation to a venture capital (VC) fund, what is the primary difference between General Partners (GPs) and Limited Partners (LPs)?

Connor McDavid is the greatest hockey player of all time….and because he is so awesome, the Oilers have paid him a lot of money.  Connor has been very smart in saving some of that money, knowing that he might not play hockey forever.  Connor has set aside $2,000,000 of cash in his bank account thinking he might be able to invest it to earn a few extra bucks.  He expects that he should be able to earn 30% (per annum) on his ideas. Connor is trying to decide what might be best for him to invest in.  He doesn’t know much about venture investing so he has decided to hire FNCE4415 students at NAIT to help him do the assessments.  The three opportunities he is considering are below: Opportunity Estimated Annual Revenue Multiple Anticipated time to Exit Hockey Pool Tracking App $10,000,000 3x 3 years McDavid’s Musical Toothbrushes $7,000,000 4x 6 years McDavid Hair Salon $5,000,000 5x 4 years A. Using the comparable valuation method (revenue multiples), what is the forecasted exit value of Hockey Pool Tracking App? (Use commas to separate thousands, eg. 2,000,000).  _______ dollars

Getting funded is the ultimate goal. How you get the money does not matter. True or False?