According to the Capital Asset Pricing Model (CAPM):

1)The stocks required rate of return increases when the stocks systematic risk increases, holding all else constant.

2)The market risk premium is positively related to the strength of the U.S. dollar.

3)The stocks required rate of return is a function of the stocks systematic risk, the risk-free rate, and the currency risk premium.

4)The relevant measure of a stocks risk is the standard deviation of returns.

The present value of a single sum to be received in the future:

1)Decreases as the interest rate (discount rate) increases.

2)Is a function of the number of compounding periods.

3)Is unaffected when the interest rate (discount rate) changes.

4)Increases as the interest rate (discount rate) increases.