Risk premium relative to the asset and stock

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Reference no: EM131861325

A company/investor should be willing to increase their risk premium relative to the asset/stock bought only if the increased risk is also associated with a corresponding increase in ________ on the asset/stock to compensate the Comany/Investor for assuming the higher risk.

A. Beta coefficient

B. Standard deviation

C. Market/relavent risk

D. Expected rate of return

2. You have been promised by your grandfather that you will receive an inheritance of $100,000 10 years from today. He is offering you the chance to inherit a lower amount of money NOW. If you believe that your interest rate should be 8%, how much do you believe you should receive now?

A) 93,571.00

B) 215,892.00

C) 91,122.00

D) 46,319.00

Reference no: EM131861325

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