What is the minimum she should be willing to accept

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1. John won a lottery she will have a choice of receiving $25,000 at the end of each year for the next 30years, or a lump sum. If she can earn a return of 10% on any investment she makes, what is the minimum she should be willing to accept today as lump sum payment?

2. George nees to capture a return of 40% for his one year investment in a property at the end of the year for $150,000 and that property will provide him with rental income of $25,000. What is the maximum amount George should be willing to pay for the property?

3. The Risk-free return is currently 3%, whereas the market risk premium is 6%. If Beta of Lucky Inc. stock is 1.8 then what is the expected return on Lucky?

4. The expected return on Carol corp stock is 16.5%. if the risk-free is 5% and the beta of Carol Corp is 2.3. what is the risk premium on the market?

Reference no: EM131936661

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