Q15. Variation in the rate of return of an investment is a measure of the riskiness of that investment. a. True b. False

Q18. Proper diversification generally results in the elimination of risk. a. True b. False

Q49. Assume you are to receive a 10-year annuity with annual payments of $1000. The first payment will be received at the end of Year 1, and the last payment will be received at the end of Year 10. You will invest each payment in an account that pays 9 percent compounded annually. Although the annuity payments stop at the end of year 10, you will not withdraw any money from the account until 25 years from today, and the account will continue to earn 9% for the entire 25-year period. What will be the value in your account at the end of Year 25 (rounded to the nearest dollar)? a. $48,359 b. $35,967 c. $48,000 d. $55,340