Please answer each question individually.

1. What is the present value of $1,000 in year 1, $2000 in year 2, and $3,000 in year 3 if the discount rate is 5%?

2.

(Expected rate of return and risk) Carter Inc. is evaluating a security. Given the information in the popup window, , calculate the investment's expected return and its standard deviation Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) PROBABILITY 0.05 0.30 0.60 RETURN 4% 8% 12% 14% 0.05 Print Done Done