7. The present value of $1,000 to be received in 5 years is ________ if the discount rate is 7.8%. (Points : 1)
8. Preferred stock is similar to a bond in the following way (Points : 1)
preferred stock always contains a maturity date.
both investments provide a stated income stream.
both contain a growth factor similar to common stock
both provide interest payments.
9. The capital asset pricing model (Points : 1)
provides a risk-return trade off in which risk is measured in terms of the market volatility.
provides a risk-return trade off in which risk is measured in terms of beta.
measures risk as the coefficient of variation between security and market rates of return.
depicts the total risk of a security.