Discuss your understanding of risk return

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Reference no: EM132041124

1. Briefly discuss your understanding of risk return and capital structure to the Law of One Price.

2. Assume that the interest rate (i) is positive, and that the future valueis greater than the present value. As you increase the number of periods, the Present Value will:

A. increase

B. decrease

3. Assume that the interest rate (i) is positive, and that the future valueis greater than the present value. As you increase i, the number of periods required for your initial investment to become a given future value will:

A. increase

B. decrease

Reference no: EM132041124

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