Earned by risk-free asset is referred

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Reference no: EM132020381

1. Today, your grandmother gave you a gift of $27,000 to help pay for your college education. She told you that this amount was the result of a one-time investment at 8.5% interest 13 years ago. How much did your grandmother originally invest? Select one: a. $9,349.26 b. $9,192.45 c. $9,504.55 d. $9,002.99 e. $9,419.25

2. The excess return earned by an asset that has a beta of 1.0 over that earned by a risk-free asset is referred to as the: Select one: a. market rate of return. b. real rate of return. c. systematic return. d. total return. e. market risk premium.

3. An investment earned the following returns for the years 2013 through 2016:20%, -5%, 35%, and 10%. What is the variance of returns for this investment? Select one: a. 0.0283 b. 0.0292 c. 0.1747 d. 0.2987 e. 0.0892

Reference no: EM132020381

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