The value of an investment paying 4% compounded quarterly will have a value at the end of one year equal to 1) __________ A) An investment paying 1% compounded annually at the end of 4 years. B) An investment paying 16% compounded annually at the end of 1 year. C) An investment paying 2% compounded semi-annually at the end of 1 year. D) An investment paying 4% compounded annually at the end of 4 years. When the rate of return is equal to the discount rate 2) _______ A) the cost of an investment equals the future value of its benefits. B) the cost of an investment equals the present value of its benefits. C) the cost of an investment equals the sum of its benefits. D) the present value of an investment's benefits must be greater than its cost. The maximum rate of return that can be earned for a given rate of interest occurs when interest is compounded 3) ________ A) continuously. B) daily. C) monthly. D) annually. Which of the following statements about the standard deviation are correct? 4) _________ I. The standard deviation is a measure of relative dispersion. II Standard deviations should be in conjunction with expected returns to compare investments. III. The standard deviation is calculated by taking the squareroot of the variance. IV. The higher the standard deviation of an investment the lower its risk. A) I and IV only B) II and III only C) I, II and III only D) I, III and IV only Brittany purchased a stock for $14 a share and sold it six months later for $15.50. While she owned the Stock, Britanny received two quarterly dividends of $0.16 per share. Brittany's holding periodreturn on this stock is 5) ________ A) 19.3%. B) 15.0%. C) 13.0%. D) 17.4%. The adage "the sooner one receives a return on a given investment, the better, " reflects the financial concept known as the 6) ________ A) expected yield factor. B) time value of money. C) historical dividend theory. D) total return concept. Small company stocks are yielding 15.7% while the U.S. Treasury bill has a 43% yield and a bank savings account is yielding 3.8%. What is the risk premium on small company stocks? 7) __________ A) 11.9% B) 15.7% C) 11.4% D)7.6% When the stock market has bottomed out and is beginning to recover, the best portfolio to own is the one with a beta of 8) _________ A) 0.0. B) +2.0. C) +0.5. D) +1.5