As risk aversion increases ________. A) a firm's beta will ...

[craiczarry]

As risk aversion increases ________.
 
  A) a firm's beta will remain neutral
  B) investors' required rate of return will increase
  C) a firm's beta will decrease
  D) investors' required rate of return will remain unchanged

Question 2

Thelma is planning for her son's college education to begin five years from today. She estimates the yearly tuition, books, and living expenses to be 5,000 per year for a four-year degree, assuming the expenses incur only at the end of the year.
 
  How much must Thelma deposit today, at an interest rate of 8 percent, for her son to be able to withdraw 5,000 per year for four years of college?
  A) 20,000
  B) 13,620
  C) 39,520
  D) 11,270

[beccamahon]

Answer to Question 1

B

Answer to Question 2

D

[craiczarry]

Excellent

[upturnedfurball]

TYSM