Which of the following statements about Security Market Line (SML) equation r_i = r_RF + (r_M r_RF)b_i 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.