A negative coefficient of correlation between two stocks implies that:

	A.	Two stock returns tend to move in the same direction.
	B.	On average, two stock returns are negative.
	C.	Two stock returns tend to move in opposite directions.
	D.	On average, two stock standard deviation are negative.

The market risk premium is also called as the equity risk premium, and the market risk premium is measured by:

	A.	Treasury-bill rate.
	B.	standard deviation of the market portfolio.
	C.	expected market return minus risk-free rate.
	D.	beta.

Which of the following statements is CORRECT?

	A.	An annuity is a series of equal payments that are made, or received, forever.
	B.	A (level) perpetuity is a series of equal payments that are made, or received, for a finite period of time.
	C.	An annuity is a series of equal payments that are made, or received, for a finite period of time.
	D.	A growing perpetuity is a series of equal payments that are made, or received, forever.