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two parts, really stuck on the first One of your friends recently received a settlement from a lawsuit. The judge awarded them annual payments. They

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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 O $105,000.00 O $9,523.81 $66,666,67 $100,000.00 Assets A and B have perfectly positively correlated returns (i.e., their correlation is +1). Combining these two risky assets will result in the creation of a portfolio with a standard deviation (0) that: is zero. O is less than a weighted average of Asset A's standard deviation and Asset B's standard deviation is a weighted average of Asset A's standard deviation and Asset B's standard deviation. O is greater than a weighted average of Asset A's standard deviation and Asset B's standard deviation. More than one of the above could be correct

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