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Question 3 (1 point) Assume you have access to capital markets and all cash flows are risk free. The risk free rate is positive. Which
Question 3 (1 point) Assume you have access to capital markets and all cash flows are risk free. The risk free rate is positive. Which of the following cash flows should you prefer? $11 at t = 3 $10 at t = 4 $10 at t = 6 Not enough information to determine which option is best $10 at t = 7 Question 4 (1 point) A bank has an APR of 5.2%, compounded 52 times per year. Which of the following expressions correctly characterizes the EAR? 1.001 = (1 + EAR)52 1.001 = (1 + EAR) 1.0011/52 = 1 + EAR 1.00152 = 1 + EAR None of the above
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