Question
Which of the following statements about Security Market Line (SML) equation r i = r RF + (r M r RF )b i is true?
Which of the following statements about Security Market Line (SML) equation ri = rRF + (rM rRF)bi is true?
| ri is the expected rate of return for stock i. | ||
| rRF is the real risk-free rate. | ||
| bi is the beta of the market portfolio. | ||
| The risk premium on the stock equals to ri - rRF. |
Which of the following statements about annuity is true?
| The present value of annuity due is smaller than the present value of the similar ordinary annuity. | ||
| The future value of annuity due is smaller than the future value of the similar ordinary annuity. | ||
| The future value of annuity due is smaller than the present value of the similar ordinary annuity. | ||
| None of the above statements is correct. |
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Cost-Benefit Analysis
Authors: Euston Quah, E.J. Mishan
5th Edition
0415350379, 9780415350372
