1. The present value of a series of 50 payments starting at 100 at the end of the first year and increasing by 1 each year thereafter is equal to 2X. The annual effective rate of interest is 9%. Calculate X.
2. True or False: If a portfolio has a positive investment in every asset, then the expected return on the portfolio is greater than that on every asset in the portfolio.
3. True or False: The standard deviation of a well-diversified portfolio is greater than the average (or mean) standard deviation of the members of the portfolio.