Question 5 4 What is the present value of a five-period annuity of $4,000 if the interest rate per period is 12% and the first payment is made today? $8,074.70 $7.209.55 $12.112.05 $16,149.40 $14,419.10 Question 6 6 A portfolio is comprised of 60% of Stock A and 40% of Stock B. What is the expected return of the portfolio? Return on stock B Scenario Recession Probability 5% Return on stock A -32% 4% Normal 80% 14% 8% Boom 15% 28% 11% O 7.68% 11.58% 7.7% 9.64%

Question 5 AF What is the present value of a five-period annuity of $4,000 if the interest rate per period is 12% and the first payment is made today? $8,074.70 $7,209.55 $12,112.05 $16,149.40 $14,419.10 D Question 6 A portfolio is comprised of 60% of Stock A and 40% of Stock B. What is the expected return of the portfolio? Scenario Recession Normal Boom 7.68% 11.58% 7.7% 9.64% 6 p Probability 5% Return on stock A -32% Return on stock B 4% 80% 14% 8% 15% 28% 11%