A security with risk-free future cashflow of $1,590 one year from today is trading at $1,540. Is the security over-priced if the risk-free interest rate is 6% ? True False Book value like market value of a financial asset reflects expected future cashflows that the asset will produce. True False Historically, long-term average returns on riskier assets have been relatively higher. True False What will be an annuity's price today if it will pay $2,000 at each year-end over the next 5 years? The annual interest rate is 8%. a) $8,624.25 b) $10,000 c) $14,693.28 d) $2,938.60 e) None of the above