1. If the risk-free rate is 6.0%, the expected return on the market is 10.0%, and the expected return on Security J is 15.6%, what is the beta for Security J?

	2.94
	0.96
	2.41
	0.86
	1.78

2. If you deposit $12,000 per year for 21 years (each deposit is made at the beginning of each year) in an account that pays an annual interest rate of 9%, what will your account be worth at the end of 21 years?

	$121,542.55
	$111,506.92
	$742,480.06
	$681,174.36
	$502,092.18

3. You are offered an annuity that will pay $13,000 per year for 15 years (the first payment will occur one year from today). If you feel that the appropriate discount rate is 13%, what is the annuity worth to you today?

	$84,010.92
	$525,427.04
	$94,932.34
	$593,732.55
	$387,668.74