How much less is a perpetuity of $3,750.00 worth than an annuity due of the same amount for 36 payments? Assume an interest rate of 13%. (Notice: if the present value of the perpetuity is higher, then the number will be negative.)

Multiple Choice

• $3,349.74

• $4,019.69

• $3,684.71

• $3,014.77

One investor is trying to derive the implied discount rate by comparing an annuity and an annuity due. Assume that the future value of the annuity is $49,731.00, and the future value of the annuity due is $51,964.00. All the other information regarding these two investments are similar, what's the implied discount rate?

Multiple Choice

• 6.74%

• 3.59%

• 5.39%

• 4.49%

Suppose you want to achieve a portfolio beta of 1.26 by including only three stocks into it. Stock A has a beta of 0.87, Stock B has a beta of 1.21, and Stock C has a beta of 1.92. What amount would be the weight of Stock A in this portfolio if the weight of Stock C is 22%?

• 21.86%

• 24.99%

• 28.11%

• 31.24%