6. If a projects net present value is 0, what is the most appropriate decision for the investor to take?

1. Accept the project
2. Reject the project
3. Do nothing
4. Consider non-financial factors

7. Best form of diversification happens when

1. buying similar stocks and bonds in different industries
2. buying similar stocks and bonds in the same industries
3. buying different stocks and bonds in the same industries
4. buying different stocks and bonds in different industries

8. 1. Mary just purchased a bond which pays $60 a year in interest. What is this $60 called?

A. coupon

B. face value

C. discount

D. call premium

E. yield

1. Mary just purchased a bond which pays $60 a year in interest. What is this $60 called?

A. coupon

B. face value

C. discount

D. call premium

E. yield

8. What are factors that can affect a companys share price in the stock market?

1. Market sentiment
2. Interest rate changes
3. Good news announced by the company
4. All of the above

9. Which of the following types of investment represents ownership in a company?

1. Bonds
2. Shares
3. Options
4. Loan

10. In times of expected economic boom, which of the following instrument should you be investing in?

a) Preference shares

b) Bonds

c) Ordinary shares

d) Gold