i. An insurance investment plan promises Ms. Valentine a lumpsum of Sh.5,500,000 after the end of fifteen years from now. If the cost of capital is 18%, how much is Valentine willing to accept right now in lieu of the lumpsum?

A.Sh.65,855,614

B.Sh.459,338

C.Sh.2,500,000

D.Sh.366,667

E.None of the above

ii. The average lifespan of Kenyan female is 60 years. A young lady just turned 35 is involved in an accident that totally paralyses her. Her hitherto sole source of income was a salaried job of a net pay of Sh.55,000 per month receivable at the end of every month.Determine the opportunity cost of lost income in shillings at the time of the accident if the average required rate of return is 15%.

A.16,500,000

B.4,294,089

C.\4,266,338

D.178,394,129

E.140,443,392

iii.The returns of Asset A and those of asset B over a given investment horizon are provided as:

12%

19%

15%

17%

17%

15%

19%

14%

20%

13%

Determine the difference between the standard deviation of returns of Asset A and that of Asset B

A.2.871 B. 2.154 C. 3.603

D.8.243

E.None of the above