1. Find one company that has negative beta. Also, explain what does that negative beta say about the risk of investment in that company?
2. Explain why a dollar has different values dependent on point in time received and how “present valuing” or “future valuing” cash flow corrects for these differences.
3. A stock provides an expected return of 10% per year and has a volatility of 20% per year. What is the expected value of the continuously compounded return in one year?