10 pts Question 2 which of the fingarefale? higher rates of tu niebients whose retians are highly uncertain and most sistors are risk ver Other things held on an increase in the cost of capital will result in a decrease in a project's R the discount est rate is persitive the present value of an expected series of payments will always exceed the future value of the same series Pro A has but one stock, while Portfolio 3 consats of all stocks that trade in the market, each held in proportion to its market value. Because of its diversificabin Petfole will by definition be less #stick's market price exceeds its intrinsic value as seen by the marginal investor, then the investor will sell the stock until its price has fallen down to the level of the investor's estimate of the intrinsic value Divgarding risk, if money has time value, it is impossible for the future value of a given sum to exceed its present value Starting to invest early for retirement reduces the benefits of compound interest. Market risk refers to the tendency of a stock to move with the general stock market. A stock with above-average market risk will tend to be more volatile than an average stock and its beta will be greater than 1.0 Diversification will normally reduce the riskiness of a portfolio of stocks One advantage of the payback method for evaluating potential investments is that it provides information about a project's liquidity and risk. (se in the cost of capital will result in a decrease in a project's RR. na in pive the present value of an expected series of payments will always exceed the future value of the same series. hat one stock whe Purto 8 consists of all stocks that trade in the market, each held in proportion to its market value. Because of its dation Auto will by definition de ciskless k's market price exceeds its intrinsic value as seen by the marginal investor, then the investor will sell the stock until its price has fallen down to Dregarding risk money has time value, it is impossible for the future value of a given sum to exceed its present value. O Starting to invest early for retirement reduces the benefits of compound interest Market risk refers to the tendency of a stock to move with the general stock market. A stock with above-average market risk will tend to be more vola than an average stock and its beta will be greater than 1.0. Diversification will normally reduce the riskiness of a portfolio of stocks. One advantage of the payback method for evaluating potential investments is that it provides information about a project's liquidity and risk