1. Which of the following financial assets is likely to have the highest required rate of return based on risk?
Corporate bond.
Treasury bill.
Certificate of Deposit.
Common stock.
2. Sharon Smith will receive $1,000,000 in 45 years. The discount rate is 19%. As an alternative, she can receive $800 today. Which should she choose?
the $1 million in 50 years.
$600 today.
she should be indifferent.
need more information.