10) Riskier securities have returns. a) higher expected b) lower realized c) higher instantaneous d) lower long-term 11) If a stock has a higher than average expected return, you would logically expect it is a) widely held by investors b) riskier than average c) in an industry with good prospects d) a well-managed company 12. Technically, refers to the past; refers to the future. a) return, expected return b) realized return, return c) return relative, return d) return, return relative 13) If the interest rate is zero, the future value interest factor equals a) -1.0 b) 0.0 c) 1.0 d) 2.0 18) The rate of interest is typically the required rate of return on a three-month U.S. t-bill. a) nominal b) real c) risk-free d) premium 19) Generally, long-term loans have higher interest rates than short-term loans because of a) the general expectation of higher future rates of inflation. b) lender preferences for shorter-term, more liquid loans. c) greater demand for long-term rather than short-term loans relative to the supply of such loans. d) all of the above