Which of the following is correct about risk and return? The reward for bearing risk is known as the standard deviation An increase in the risk of an investment will result in a decreased risk premium Riskier assets will on average, earn lower returns Based on historical data, there is no reward for bearing risk In general, the higher the expected return the higher the risk Question 19 For the next 14 years you will get cash flows of $55 at the end of the year. The initial investment is $320. From this investment, what is the rate of return that are you expecting? O 13.43 O 11.97% O 18.28% O 16.28% O 14.65% Question 10 You and your brother Peter got a $100,000 30-year fixed-rate mortgage at 9%. While you will obtain a 30-year mortgage, you plan to prepay the mortgage by paying an additional amount per month with your regular payment. What is the additional amount that you must pay per month if you want to pay off the mortgage in 25 years? $62.32 O $34.57 O $38.05 $19.83 O $55.23 Previous Next For the next 14 years you will get cash flows of $55 at the end of the year. The initial investment is $320. From this investment, what is the rate of return that are you expecting? O 13.43% O 11.97% 18.28% O 16.2896 14.65%