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FIN 550 MIDTERM EXAM

06/04/2020 Client: tiger Deadline: 2 Day

Question 1

The uncertainty of investment returns associated with how a firm finances its investments is known as

Answer

Business risk.

Liquidity risk.

Exchange rate risk.

Financial risk.

Market risk.

5 points

Question 2

Measures of risk for an investment include

Answer

Variance of returns and business risk

Coefficient of variation of returns and financial risk

Business risk and financial risk

Variance of returns and coefficient of variation of returns

Question 3

In the phrase "nominal risk free rate," nominal means

Answer

Computed.

Historical.

Market.

Average.

Risk adverse.

Question 4

All of the following are major sources of uncertainty EXCEPT

Answer

Business risk

Financial risk

Default risk

Country risk

Liquidity risk

Question 5

For an investor with a t

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