A company/investor should be willing to increase their risk premium relative to the asset/stock bought only if the increased risk is also associated with a corresponding increase in ________ on the asset/stock to compensate the Comany/Investor for assuming the higher risk.
A. Beta coefficient
B. Standard deviation
C. Market/relavent risk
D. Expected rate of return
2. You have been promised by your grandfather that you will receive an inheritance of $100,000 10 years from today. He is offering you the chance to inherit a lower amount of money NOW. If you believe that your interest rate should be 8%, how much do you believe you should receive now?
A) 93,571.00
B) 215,892.00
C) 91,122.00
D) 46,319.00