True or False. Someone who is risk averse has a general dislike for risk and a preference for certainty. If risk aversion exists in the market, then investors in general are willing to accept somewhat lower expected returns on less risky securities. Different investors have different degrees of risk aversion, and the end result is that investors that are more averse to risk tend to hold securities with less risk (and therefore a lesser expected return) than investors who have more tolerance for risk. True False Miller Inc. is considering a capital budgeting project that has an expected return of 10% and a standard deviation of 30%. What is the project's coefficient of variation? O 1.8 O 2.2 O 2.6 O 3.0 3.4 One of your friends recently received a settlement from a lawsuit. The judge awarded them annual payments. They receive their first payment $10,000 one year from today. After receiving that payment, the amount they received will increase each year by 5% forever (i.e., two years from today they get $10,500, three years from today they get $11,025, etc.). They offer to sell you all the cash flows from this settlement for a lump sum today. If you believe the appropriate rate of return on this investment is 15%, how much should you pay them for it today? O $1,000,000.00 $105,000.00 $9,523.81 $66,666,67 $100,000.00 True or False. If the present value of a perpetuity is decreasing, the discount rate must be increasing. (Assume all other inputs are held constant.) O True False