13. What is the present value of $5,000 received every year forever? The interest rate is 7 percent p.a. and the first payment is received in five years.

Select one:

a. $50,927.58

b. $71,428.57

c. $54,492.52

d. $7,012.76

12.

Cortex had a beta of 1.2 at a time when the risk free rate was 5% and the market was returning 7%. What was the expected return of Cortex?

Select one:

a. 7.4%

b. 7.6%

c. 2.4%

d. 7.0%