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