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FIN120 Exam 2 2025 Questions and Answers Which of the following statements is true? - ....ANSWER☑️☑️...-The present value is calculated by using the discount factor. When the discount rate - ....ANSWER☑️☑️...-increases, the present value of a future cash flow decreases. Which of the following statements is true of the rule of 72? - ....ANSWER☑️☑️...-It can be used to determine the amount of time it takes to double an investment. Which of the following investments will have the highest future value at the end of three years? Assume that the effective annual rate for all investments is the same. ....ANSWER☑️☑️...-You earn $1,000 at the beginning of every year for the next three years (a total of three payments). If your investment pays the same amount at the end of each year for a period of six years, the cash flow stream is called - ....ANSWER☑️☑️...-an ordinary annuity Which of the following statements is true about the effective annual rate (EAR)? ....ANSWER☑️☑️...-The EAR is the interest rate actually paid (or earned) after accounting for compounding. Which of the following is the best measure of the systematic risk in a portfolio? ....ANSWER☑️☑️...-Beta 1