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1. If the future value of an ordinary, 7-year annuity is $10,000and interest rates are 4%, what is the future value of the sameannuity due? A. $9,615.39 B. $10,010.00 C. $10,710.00 D.$10,400.002.The returns on the common stock of ACME closely follow theeconomy. In a booming economy, the stock is expected to return 23%in comparison to 14% in a normal economy and a -18% in a recession.The probability of a recession is 18% while the probability of aboom is 22%. What is the standard deviation of ACME stock'sreturns?A. 14.71%B. 12.01%C. 11.51%D. 15.81%E. 13.71%3. Suppose the common stock of ACME has a beta of 1.28 and arequired return of 15.47%. The rate of return on T-Bills 3.7% whilethe inflation rate is 4.2%. What is the expected market riskpremium?A. 10.13%B. 11.50%C. 11.20%D. 7.12%E. 9.20%