alue of a retirement annuity. An insurance agentis trying to sell you an immediate-retirement annuity, which for a single amount paidtoday will provide you with $12,000 at the end of each year for the next 25 years. Youcurrently earn 9% on low-risk investments comparable to the retirement annuity. Ignoringtaxes, what is the most you would pay for this annuity

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