1a) Which of the following statements is true about time value of money assuming positive interest rate and inflation rate? (There may be more than one correct answer. You will lose marks by choosing a wrong answer. The minimum mark for the question is zero.)

Select one or more:

a. A dollar received today is worth more than a dollar to be received in the future because funds received today can be invested to earn a return.

b. None of the statements are true.

c. A dollar received today is worth less than a dollar to be received in the future because future dollars are not affected by inflation.

d. A dollar to be received in the future is worth more than a dollar received today because it would have less risk associated with it.

e. A dollar received today is worth more than a dollar to be received in the future because the purchasing power decreases over time.

f. A dollar received today is worth more than a dollar to be received in the future because future dollars are not affected by inflation.

1b) Which of the following is (are) the reasons for some people to choose interest only loan? (There may be more than one correct answer. You will lose marks by choosing a wrong answer. The minimum mark for the question is zero.)

Select one or more:

a. Banks usually apply lower interest rate for interest only loans.

b. The interest only loan provides more tax deductions for investment properties.

c. Interest only loan requires lower periodic repayment over the whole term of the loan.

d. The interest only loan requires lower periodic repayment during the interest-only term.

e. The interest only loan is less expensive over the whole loan term.

1c) Beatrice believes that the companys CFO, Bradley, knew about the acquisition plan before it was announced to the public and makes a lot of personal gain by trading shares. If Beatrice is right, which efficient market hypothesis is observed in this case? (There may be more than one correct answer. You will lose marks by choosing a wrong answer. The minimum mark for the question is zero.)

Select one or more:

a. Semi-strong form

b. Operational efficiency

c. Financial efficiency

d. Weak form

e. Strong form