1. As the discount rate applied to a future value lump sum increases, the present value

a		stays the same
b		increases by some amount
c		doubles
d		decreases
e		There is not enough information to answer this question.

2. Two years ago, you invested $1,000 in a healthcare stock. Your return during the first year was -50 percent, while your return in the second year was +50 percent. Your investment is now (at the end of two years) worth less than $1,000. True or False?

3. If an organization's managers are risk averse, they will always prefer an investment opportunity with lower risk to an investment opportunity with higher risk. True or False?