1) Investors are rewarded for assuming:

A) diversifiable risk. B) any type of risk. C) nondiversifiable risk. D) total risk.

2) The present value of $10,000 discounted at 5% per year and received at the end of 5 years is:

A) $10,000/(1.05)⁵.

B) $10,000/1.25.

C) $10,000 (1.05)^1/5.

D) $10,000(1.05)⁵.