23. The present value of an annuity due a. is less than the present value of an ordinary annuity b. is greater than the present value of an ordinary annuity c. is less than the cost of the annuity d. is greater than the cost of the annuity 24. A diversified portfolio a. increases systemic risk b. reduces systemic risk c. increases unsystemic risk d. reduces unsystemic risk 25. The risk associated with dispersion around an expected value (e.g., expected return) is measured by a. beta coefficient b. range (i.e., high-low values) standard deviation c. d. debt to total assets (i.e., the debt ratio) 26. Systemic risk 1. is the tendency for a stock's return and the return on the market to move together 2. is reduced by constructing a diversified portfolio 3. depends on the tirm's business and financial risk 4. is measured by beta coefficients d. 2 and 4 a. 1 and 2 b. 2 and 3 c. 1 and 4 27. A beta coefficient for a risky stock is d.-ve (