1. Which of the following times are needed to determine the value of a financial asset?
I. holding period
II. amount and time of each cash flow
III. risk-adjusted discount rate
IV. tax rate
a. II and III only
b. I and IV only
c. I and III Only
d. II and IV only
2. Suppose the required rate is 8% (APR), which of the following assumptions would result in the lowest present value?
a. quartetly compounding
b. monthly compounding
c. annual compounding
d. daily compounding