If the Interest Rate Is Positive,then the Present Value of an Annuity

question 137

True/False

If the interest rate is positive,then the present value of an annuity due will be less than the present value of an ordinary annuity.

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Definitions:

Risk-free Rate

The theoretical rate of return on an investment with zero risk, typically represented by government bonds.

Market Return

The total return of a market index based on the collective performance of its constituents, typically over a specified time frame.

Portfolio Expected Return

Portfolio Expected Return is the weighted average of the expected returns on the assets included in a portfolio.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole.