answer question 8-16

m/courses/89/7/quiz D Question 8 1.25 pts A firm wants to start a project. A team of financial analysts estimated the following . cash flows year cash flow 0 -$100,000 1 55,000 2 43,000 45,000 Suppose that the discount rate (interest rate) is 12%. Based on your calculation of PI, the project should O Not be undertaken O Be undertaken in the short run not in the long run O Be undertaken Be undertaken in the long run now in the short run D Question 9 1.25 pts O gm/courses/8977/quizzes/52666/take D Question 9 1.25 pts the amount of time required for an investment to generate cash flows sufficient to recover its initial cost is called O NPV (Net Present Value) O Pay back rule O Pl (Profitability Index) AAR (Average Accounting Return) D Question 10 1.25 pts The capital budgeting techniques that ignores the time value of money is All capital budgeting techniques ignore the time value of money OD Question 10 1.25 pts The capital budgeting techniques that ignores the time value of money is O All capital budgeting techniques ignore the time value of money ONPV pay-back period O PI D Question 11 1.25 pts One flaw of the payback period isom/courses/8977/quizzes/52666/take O NPV O pay-back period PI D Question 11 1.25 pts One flaw of the payback period is It ignores cash flaws after the cut off point it is easy to calculate It is handy for short term projects Easy to understand D Question 12 1.25 pts 9om/courses/8977/quizzes/52666/take It ignores cash flaws after the cut off point O it is easy to calculate O It is handy for short term projects Easy to understand D Question 12 1.25 pts If you buy a treasury bond that gives $100 per year, the risk of the bond is Zero Negative We cannot tell 'Positive D Question 13 1.25 ptscom/courses/8977/quizzes/52666/take if you buy a ucasury bunu that gives #190 pcrycal, FICTION UP UIC DOTIU IS O Zero Negative We cannot tell O Positive D Question 13 1.25 pts The person who requires high return regardless of risk is called O There is no relationship between return and risk preference Risk averse Risk neutral (indifferent) Risk seckinge.com/courses/8977/quizzes/52666/take O Risk neutral (indifferent) Risk seeking D Question 14 1.25 pts Assume that an investor has formed a portfolio of two assets; asset A and asset B. if he invested 30% of his wealth in asset A. If the return on asset A is 20% and the return on the asset B is 40%, the weight of the wealth invested in asset B is O 40% We cannot find the weight O 70% 0 60% D Question 15 #1 25 pts70% 60% Question 15 1.2 Referring to question 16, the portfolio's return is 40% 346 O 37% 30% D Question 16 1.25 p It the correlation between two variables is (-1), then the two variables are said to beurses/8977/quizzes/52666/take O 34% O:37% 30% Question 16 1.25 If the correlation between two variables is (-1), then the two variables are said to b Positively correlated O Negatively correlated Perfectly positively correlated Perfectly negatively correlated D Question 17 1.25 p