Incuro Suppose someone offered you the choice of two equally risky annuities, each paying $10,000 per year for five years. One is an ordinary annuity; the other is an annuity due. Which of the following statements is most correct? Assume that the prevailing interest rate is greater than z ero. O a. The present value of the annuity due exceeds the present value of the ordinary annuity, and the future value of the annuity due also exceeds the future value of the ordinary annuity O b. The present value of the ordinary annuity must exceed the present value of the annuity due, but the future value of an ordinary annuity may be less than the future value of the annuity due . Insufficient information. Answer depends on the prevailing interest rate O d. O e. If interest rates increase, the difference between the present value of the ordinary annuity and present value of the annuity due remains the same The present value of the annuity due exceeds the present value of the ordinary annuity, while the future value of the annuity due is less than the future value of the ordinary annuity 10 of 30 Unsure The intercept of the security market line (SML) is: O a Beta O b. Market risk premium O c. Expected return of the minimum variance portfolio O d. Total risk O e. Risk free rate Mark