Please select the right answer for 1 to 5

(A, B, C or D).

A: price risk

B: financial market

C: financial statement

D: cash flow

1. It can cause an adverse change in value of investment.

2. It refers to the amount of money generated by a given company.

3. It measures the profitability of a given company.

4. Funds flow from buyer to seller here.

5. Rising interest rate usually increases that.

Please decide whether the following statements are true (T) or false (F). 6.Depreciation have to be subtracted from net income in cash flow statement. T/F

7. Market-to-book value ratio is calculated by dividing the market price per share by the book value per share. T/F

8. Money market securities are usually for long-term. T/F

9. If interest rates are low, borrowing is less attractive than in the case of higher interest rate. T/F

10. Operating cash flow involves all revenues and costs from the normal operation of the firm. T/F Please give a detailed answer to the following question?

11. Explain the difference between risk and uncertainty! Which forms of risk can be distinguished?