Question: please solve 1 and 2. thumb up for u 3. Which of the following features does not characterize a risk- neutral world: 2. The expected
3. Which of the following features does not characterize a risk- neutral world: 2. The expected return on a stock (or any other investment) is the risk free rate b The discount este used for the expected payoff on an option (or any other instrument) is the investment's tequited return. c. Investors are assumed to be risk-neutral d. None of the above. 4. Term life insurance differs from whole life insurance due to the fact that: a. The fast is a permanent life insurance, while the second is a temporary life insurance. b. The first has a sue payment by the occurring of the event, while the second is uncertain if it will pay, c. The first has lower premiums than the second one d. The first is used only when someone borrow a mortgage, while the second one is used even when someone takes a consumer loan
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