1. Aryanna invests $45,000 today into an investment that earns 7% annually, but interest is compounded continuously. What is the future value of this investment 16 years from today?
a. $129,000
b. $143,000
c. $138,000
d. $131,500
e. $133,000
2. What is the risk premium for a stock where the risk free rate is 5.1%; the equity market risk premium is 5.0%; and the beta of the stock is 1.2.
A 11.1%
B 6.1%
C 6.0%
D 12.1%