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Fin-120 Exam 2 2025 Questions and Answers Rule of 72 - ....ANSWER☑️☑️...-the time it takes to double your money Annuity vs Annuity Due - ....ANSWER☑️☑️...-Annuity due will always be higher and are paid earlier Holding period return - ....ANSWER☑️☑️...-[(End value - Beg value) + income]/ Beg value standard deviation (STD) - ....ANSWER☑️☑️...-- is a measure of total risk - higher Std means higher risk Present Value - ....ANSWER☑️☑️...-Current value of a future payment Future value - ....ANSWER☑️☑️...-The amount your investment will grow to how to increase FV - ....ANSWER☑️☑️...--Increase the number of years of compounding (n) -Increase the interest or discount rate (i) - Increase the original investment (PV) Capital Asset Pricing Model (CAPM) - ....ANSWER☑️☑️...-the expected rate of return on a stock to the risk-free rate plus risk premium for systematic risk Security Market Line (SML) - ....ANSWER☑️☑️...-a representation of the CAPM where the line represents the appropriate rate of return 1