Question: (a) A manager that accepts a project with a negative NPV, is an example of the agency problem II. (b) Many listed firms recently announced

(a) "A manager that accepts a project with a negative NPV", is an example of the agency problem II. (b) Many listed firms recently announced good results but the prices of those stocks did not change. (market efficiency) (c) In the Modigliani-Miller world without taxes, the optimal capital structure is 100% debt. (d) Cost of equity is always bigger than the cost of debt. (e) A portfolio under the CML has a lower sharp ratio than the market portfolio. (f) If a manager wants to know the NPV of a project (scenario analysis)

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