1. You are going to withdraw $1,000 at the end of each year for the next three years from an account that pays interest at a rate of 9% compounded annually. The account balance will reduce to zero when the last withdrawal is made. How much money will be in the account immediately after the second withdrawal is made?
a. $1,000.00
b. $917.43
c. $2,000.00
d. $982.29
e. $925.93
2. Consider a portfolio made up of two risky assets and a risk-free asset. You invest 20% in asset A with a beta of 1.25 and 40% in asset B with a beta of 1.1. What is the beta of the portfolio?
a. 0.69
b. 0.94
c. 1.03
d. 1.12
e. 1.20