4. Which of the following assets is most liquid? a. $10,000 worth of Google common stock. b. A 10% ownership stake of the Linebacker, a bar located across from Notre Dame. c. A 100% ownership stake of Jesus, a Latin-American restaurant in Mishawaka that operates as a sole proprietorship. d. A pizza oven used to make Blaze pizzas. e. Each of the above assets are equally liquid. 5. Suppose two athletes each sign a 20-year contract for \$200 million. Fred's contract will pay him the $200 million in 20 equal installments. Chaz's contract will pay him the $200 million in 20 installments, but the installments will decrease by 10% per year. Who got the better deal? a. Fred b. Chaz c. Neither Fred nor Chaz got the better deal. 6. You have an investment opportunity in Japan. It requires an investment of $1,050,000 today and will produce a cash flow of 124,110,000 (e.g., 124,110,000 yen) in three years with no risk. Suppose the risk-free interest rate in the United States is 3.5% per year, compounded annually, the risk free interest rate in Japan is 2.0% per year, compounded annually, and the current competitive exchange rate is 111 per $1. What is the NPV of this investment? The NPV of this opportunity is: 7. News has just hit Wall Street that Acme Brick, a company with 10 million shares outstanding, unexpectedly won a lawsuit in court against Amazon Brick. In the news announcement, it was revealed that the judge ordered Amazon to pay Acme $20,000,000 immediately for infringing on Acme Brick's patented brick design. The announcement also revealed that Amazon will not appeal this ruling. Assume that the market expected the judge to rule in Amazon's favor (in which case Acme would have received $0.00 ). Within 30 minutes after the news hit, the price of a share of Acme Brick's common stock rose from $55.00 per share to 56.10 per share. Five days later, Acme Brick's common stock was trading at a price of $57.00 per share. Given this information, select the most accurate statement below. a. The market's response to the news announcement was an overreaction by the market. b. The market's response to the news announcement was an efficient market reaction. c. The market's response to the news announcement was a delayed market reaction