________ is the return on a risky asset that is determined on the basis of risk-free rate, market return and the beta.

Select one:

a. real return

b. nominal return

c. dollar return

d. expected return

You are evaluating two annuities. They are identical in every way except that one is an ordinary annuity and one is annuity due. Which of the following is false?

Select one:

a. The ordinary annuity must have a lower present value than the annuity due.

b. The ordinary annuity must have a lower future value than the annuity due.

c. The annuity due must have the same present value as the ordinary annuity.

d. The two annuities will differ in present value by the amount (1+r).