3. Asset A has the following future cash flows. If asset B has identical risk as with A and the expected return for B is 15%. Asset C' expected return is 20%. Risk-free interest rate is 5%.

The expected return for A is %.

The risk premium for A is %.

The present value of these cash flows (asset A) is _________

1. 6641
2. 8649
3. 5887
4. 7548

T CF 1 1000 2 2000 3 3000 4 4000