fin

Which of the following are characteristics of a perpetuity? Check all that apply. -A perpetuity continues for a fixed time period. - In a perpetuity, returns—in the form of a series of identical cash flows are earned. -The principal amount of a perpetuity is repaid as a lump-sum amount. -A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.

- In a perpetuity, returns—in the form of a series of identical cash flows are earned. -A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.

Which of the following are characteristics of a perpetuity? Check all that apply. -The principal amount of a perpetuity is repaid as a lump-sum amount. -The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate. -A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future. -A perpetuity continues for a fixed time period.

-The present value of a perpetuity is calculated by dividing the amount of the payment by the investor's opportunity interest rate. -A perpetuity is a series of regularly timed, equal cash flows that is assumed to continue indefinitely into the future.

The coefficient of variation is a better measure of stand-alone risk than standard deviation because it is a standardized measure of risk per unit; it is calculated as the ---- divided by the expected return

standard deviation

The ----- an asset's probability distribution, the lower its risk

tighter

The expected rate of return is the return expected to be realized from an investment; it is calculated as the

weighted average

investments with returns equal to the risk-free rate will have a ---- Sharpe ratio

zero