Sample Question3_ans_ST

Sample Question3_ans_ST - Sample Question Multiple Choice...

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Sample Question Multiple Choice Questions 1. Which of the following portfolios have the least risk? A) A portfolio of Treasury bills B) A portfolio of long-term United States Government bonds C) Portfolio of U.S. common stocks of small firms D) None of the above 2. As the number of stocks in a portfolio is increased: A) Unique risk decreases and approaches to zero B) Market risk decrease C) Unique risk decreases and becomes equal to market risk D) Total risk approaches to zero 3. A firm owns a building with a book value of $150,000 and a market value of $250,000. If the building is utilized for a project, then the opportunity cost ignoring taxes is: A) $100,000 B) $150,000 C) $250,000 D) None of the above 4. The real interest rate is 3% and the inflation rate is 5%. What is the nominal interest rate? A) 3% B) 5% C) 8.15% D) 2% 5. The PI of a project is most useful for decision-making in a situation where projects being considered: A) have multiple IRRs B) have positive IRRs C) are mutually exclusive and capital is limited D) are independent and capital is limited
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Sample Question3_ans_ST - Sample Question Multiple Choice...

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