13. If the Beta for stock A is less than one, then according to the CAPM a. stock A's required return is equal to the required return on the market portfolio b. stock A's required return is equal to the risk-free rate of return. c. stock A's required return is less than the required return on the market portfolio. d. stock A's required return is greater than the required return on the market portfolio. is used as a measure of 14. is used as a measure oftotal risk. systematic risk. a. Beta; beta b. Beta; standard deviation c. Standard deviation; beta d. Standard deviation; standard deviation 15. You decide to save up for a big trip and deposit $3,250 in a special vacation account today. If your account earns 8.1% annually, how much will you have available to spend in 6 years? a. $3,674.41 b. $4,067.48 c. $4,406.09 d. $5,186.06 16. To measure value, the concept of time value of money is used a. to determine the interest rate paid on corporate debt b. to bring the future benefits and costs of a project, measured by its expected profits, back to the present c. to bring the future benefits and costs of a project, measured by its cash flows, back to the present. d. to ensure that expected future profits exceed current profits today. 17. You just graduated and landed your first job in your new career. You remember that your favorite finance professor told you to begin the painless job of saving for retirement as soon as possible, so you decided to put away $5,000 at the end of each year in a Roth IRA. Your expected annual rate of return on the IRA is 95% How much will you accumulate after 37 years of investing? Round to the nearest dollar. a. $1,071,593 b. $1,178,740 c. $1,323,172 d. $1,459,428 4 of 6