Granny Gums has established a scholarship at the Martin College of Dentistry. She will make deposits into an endowment account that pays 12% per year based on the following schedule.

Year 0 Deposit $100
Year 1 Deposit 90
Year 2 Deposit 80
Year 3 Deposit 70
Year 4 Deposit 60
Year 5 Deposit 50
Year 6 Deposit 40

If the first scholarship is to be awarded one year after the first deposit is made and thereafter the award will be given indefinitely, what is the scholarship amount?

Consider a treasury bill with a rate of return of 5% and the following risky securities: security a: e(r) = .15; variance = .0400 security b: e(r) = .10; variance = .0225 security c: e(r) = .12; variance = .1000 security d: e(r) = .13; variance = .0625 the investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. the security the investor should choose as part of her complete portfolio to achieve the best cal would be a. security a b. security b c. security c d. security d