1. The relationship between present value and the future vale is best described a. direct b. inverse c.unrelated d. uncorrelated e. parallel.
2. If the risk free rate is 5 %, the expected return on the market portfolio is 12% and the beta of Stock B is 1.4 , what is the required rate of return for Stock B according to the Capital Asset Pricing Model (CAPM)?
3. Jennifer is planning a trip to Alaska in 5 years. She has calculated that she will need $15,000 to cover her expenses. Her bank offers money market investments at a rate of 4.5% compounded annually. What should Jennifer invest now to have the needed funds?