The market allocates capital to firms

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Reference no: EM132028844

1. The market allocates capital to firms based on all of the following except:

A. Higher risk requires lower returns due to higher expectations

B. The level of efficiency

C. Expected returns

D. The degree of past performance

2. You just won the $105 million Ultimate Lotto jackpot. Your winnings will be paid as $3,500,000 per year for the next 30 years. If the appropriate interest rate is 6.8 percent, what is the value of your windfall?

$42,102,751.99

$45,795,975.84

$47,332,356.97

$43,832,356.97

$44,318,686.30

Reference no: EM132028844

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