Question 19 Betty will receive an award of $3,000 at the end of each half year for the next 3 years at 6% p.a. payable half yearly? What is the present value of Jessies scholarship?

a. $15,333.45

b. $17,996.87

c. $16,963.74

d. $16,251.57

Question 20 A risky venture has the following probability distribution for its outcome 10% with probability 20% 12% with probability 50% 15% with probability 30% Thus its expected return is 12.5%. What is the standard deviation of the risky venture?

a. 1.251%

b. 3.251%

c. 1.803%

d. 2.803%

Question 21 Georgie is a finance and economics student who has inherited $50,000. Which of the following securities would be the most attractive investment for her if she is expecting inflation rates to increase?

a. 5-year government bonds (2% coupon rate).

b. 5-year government bonds (zero coupon).

c. 2-year government bonds (zero coupon).

d. 2-year government bonds (2% coupon rate).