16) An ordinary annuity is defined by: a series of equal cash flows. all of these cash flows which have a finite life. cash flows which occur at the end of each period. 18) The stock price of XYZ Drug Corporation increased dramatically on the day the FDA approved their revolutionary new drug. This is an example of: Market prices reflect information. There is a risk/return trade-off. Cash flows are the source of value. Individuals respond to incentives