Author Question: As risk aversion increases ________. A) a firm's beta will remain neutral B) investors' required ... (Read 73 times)

craiczarry · **on:** Jul 10, 2018

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