For quantitative/math questions, formula and process of the work are required. Correct answers without formula or with wrong formula give zero credit. The exam can only be submitted once Again: the exam is individual work NOT teamwork and no cheating behavior is allowed. Once identified, zero score Here is our digital textbook: Corporate Finance pdf pdf E. Question 1 3 pts Assume the interest rate is 9.9% and quarterly compounding. You are going to receive $12,000 in ten years. What is the present value? You are going to receive $2,550 at the beginning of each quarter over the next ten years. What is the present value? [only need formula and input numbers, no calculation] Edit Format Table 12pt Paragraph B

esc Canvas Question 3 Given the following information, Economy Probability of Economy Stock A B Stock Stock C Recession 0.7 -3% 0% -1% Boom ? 10% 3% 6% O words 4 pts a) What are the expected returns for stock A, B and C, respectively? List the formula, input numbers and calculate answers b) What is the standard deviation/risk for stock A? List the formula and input numbers, NO calculation needed c) What is the portfolio return given that you have $10,000, allocate $5,000 in stock A and $2,000 in stock B and the rest in stock C? List the formula and input numbers, NO calculation needed. d) The principle of diversification states that as the number of stocks under one portfolio increases, the portfolio risk more likely A) increases or B) decreases? Edit Format Table 12pt Paragraph 17 2 BIUA #3 MacBook Pro $ % ^ & 4 5 6 87 *00 8 9 0