Question 2 (15 points) Janet Miller would like to send her parents on a cruise for their 25th wedding anniversary. She has priced the cruise at $20,000.She already has $5,000, and 5 years to accumulate this money. How much must Janet deposit annually in an account paying 10 percent interest in order to have enough money to send her parents on the cruise Question 3 (20 points) You have a one million dollar ($1000000) portfolio with $200 000 invested in GM, S5000000 in Exxon-Mobile (XOM) and $300000 in IBM. Suppose the variance for al three stocks over the next three year wil be 16%.Exxon -Mobile's return has zero covariance with those of GM and the IBM, but the covariance between GM's return and IBM's return is 0.048. The average return of the GM is 15%,and of XOM is 14% and of IBM is 12% a-What is the average return, risk and coefficient of variation of your portfolio over the next year? Question 4 (10 points) John Black makes a deposit of $12,000 in a bank account. The deposit is to earn interest annually at the rate of 9 percent for seven years. What is the future value if the interest rate is compounded quarterly? Question 5 15 points If you have a required rate of return of 10%, which of the following choices has greater value? Three $100 annual cash flows with the first occurring at the end of the first year. $248.69 today $331.00 received three years from today