1. "You invest $7,900 now and receive $3,300 at the end of year 1, $3,100 at the end of year 2, $2,900 at the end of year 3, and so on. In what year do you break even on your investment? Use the discounted payback approach and assume an annual interest rate of 5.6%, compounded annually. Enter your answer as an integer."
2. A risky portfolio has an expected rate of return of 15% and a standard deviation of 20%. The Treasury bill rate is 4%. What is the reward-to-volatility ratio for the portfolio?