NPTEL Artificial Intelligence (AI) for Investments Assignment 1 Answers 2024

NPTEL Artificial Intelligence (AI) for Investments Assignment 1 Answers 2024

Hello learners In this article we are going to discuss NPTEL Artificial Intelligence (AI) for Investments Assignment 1 Answers. All the Answers provided below to help the students as a reference, You must submit your assignment with your own knowledge and use this article as reference only.

About the course:-

Over the next few decades, machine-learning (ML) and AI will transform not only the finance industry but also other industries that borrow significantly from finance. This program has been carefully designed to help future analysts, traders, brokers, consultants and other industry professionals who are either currently exposed to, or foresee artificial intelligence, machine-learning and data science proliferate their work environment. The operating environment for investment management firms continues to evolve, with technological innovations and shifting investor preferences at the heart of this change.

NPTEL Artificial Intelligence (AI) for Investments Assignment 1 Answers 2024:

1. What is the simple payback period of project A shown here. 

Answer :- b

2.  Identify the incorrect statement.

Answer :- b

3. A company does not plow back any earnings and payout all in the form of dividends at Div=$5. If the current price is P0= $40, what is the appropriate interval for the market capitalization rate (r)?

Answer :- c

4. A business has achieved steady state growth of g=6%. The expected returns from the firm are r=10%. The year-end cash flows from the business are expected to be CF=$10 and grow steadily thereafter. What is the present value (PV) of this business.

Answer :- c

5. Compute the IRR of the project with the following cash flows.

Answer :- b

6. Identify the correct Investment decision

Answer :- d

7. Consider the three projects A, B, and C, as shown here. If the opportunity cost of capital is r=10%, which of these projects have a positive NPV. 

Answer :- b

8. Which of the following is not associated with the term “separation of ownership and control.”

Answer :- d

9. A stock will pay $4 dividend (Div.), starting from this year end. Thereafter, these dividends are expected to grow infinitely in future at a steady rate of g=4%. If the discount rate is r=14%, what is the appropriate interval for present values (PV) these cash flow streams.

Answer :- a

10. If the opportunity cost of capital is r= 9%, what is the appropriate interval for the present value of FV=$374 paid in T=9th year.

Answer :- a