1. Why is it difficult to compare a new venture to an already established firm that is publicly traded?

a) The difference in firm size

b) The difference in liquidity

c) The difference in historical data

d) The difference in accounting practices

e) all of the above

2. An investor that is not diversified should be concerned with ________ risk while diversified investors should be concerned with ________ risk

a) Total; systematic

b) Total; nonsystematic

c) Systematic; nonsystematic

d) Nonsystematic; systematic