Assume two annuities will each provide $1,000 annual cash flows for five years. One is an ordinary annuity and the other is an annuity due. Which statement concerning these annuities is correct? O Both annuities are of equal value given any positive discount rate. The ordinary annuity will have the highest value at the end of Year 4. The annuity due will pay one more payment than the ordinary annuity. The ordinary annuity will pay on the first day of each time period. The annuity due is more valuable than the ordinary annuity today. Question 22 1 pts A 20-year bond has a 7.0% coupon rate and face value of $1000. The required return is 10%. What is the percentage change in the price of this bond if the interest rates decrease by 2%? Assume the bond makes semi-annual coupon payments. Approximately 2% increase Approximately 31% increase Approximately 31% decrease Approximately 21% decrease Approximately 21% increase Question 21 1 pts Consider the information in the table below: Stock Expected Beta Return Standard Deviation Stock A 11% 1 1.5 18% Stock B 10% 2.5 20% Stock C 14% 1.4 25% Stock D 12% 1.8 16% Which stock has the lowest total risk? O Stock It is impossible to tell based on the information given @ Stock A Stock D Stock B Question 20 1 pts You decide to form a portfolio of the following amounts invested in the following stocks. What is the expected return of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE NUMBER AS PERCENTAGE ROUNDING TO 2 DECIMALS. DO NOT ENTER THE % SYMBOL..i.e. if your answer is 7.77%, enter it as 7.77 Stock Apple Tesla Pepsi Disney Comcast Amount Beta $8,687 2.40 $5.952 0.73 $3,624 1.95 $6,686 1.27 $7,798 0.67 Expected Return 10.50% 16.90% 15.75% 11.80% 12.91%