Assume that the firm invests $120,000 today to get $35,000 at Year 1, $45,000 at Year 2, $55,000 at Year 3, $50,000 at Year 4, $65,000 at Year 5, and $45,000 at Year 6. Whats the Net Present Value of this investment? Assume the interest(discount) rate of 11.2%.

$76,234.25 $24,235.67 $82,594.79 $91,321.54

Same facts as above: how would your answer change if the cash inflows increase by 10% and the discount rate increases to 13.6%? NOTE: The initial investment of $120,000 remains the same (the term "cash inflows" refers to the money maderather than invested specifically).

$102,854.27 $123,214.23 $91,524.23 $87,367.80

Same facts as above: how would your answer change if the cash inflows decreases by 12% and the discount rate decreases to 5.6%? NOTE: The initial investment of $120,000 remains the same (the term "cash inflows" refers to the money maderather than invested specifically).

$102,854.27 $93,278.13 $86,245.23 $100,245.53

ABCDE Corp. had the return of -10% in 2017, 14% in 2018, 19% in 2019, and 15% in 2020. What is the variance of ABCDE Corp.s return during these years?

1.56% 2.54% 1.74% 1.30%

Which of the following is not true?

The type of efficient market hypothesis that is most often used to forecast stock prices is called the weak form of the efficient market hypothesis.

A stock's risk premium is defined as the stock's return subtracted by the risk-free rate.

A geometric average return is more reliable for the purpose of gauging the long-term performance of the stock (that is, the stock's performance over time) than the arithmetic average.

None of the above (all of the above are correct).