Question 8 The project's present value is to be likely higher if a) Discount rate is higher b) Discount rate is lower c) Amount of future value is higher d) Both b and c are correct answers. Question 9 The risk is closely defined as a) The potential variability in the future cash flow b) The chances that an investment value or return will be less than it's expected value c) It has potentially more than one outcome d) All of the above answers are correct Question 10 Risk-return relation is broadly characterised by the following statements a) The higher the risk, the lower the return is. b) The lower the risk, the higher return is. c) Investment with zero risk offers no return. d) The investment in fixed income is less risky than investment in stock markets thus stock offers a higher return than fixed income securities.

Question 8 The project's present value is to be likely higher if a) Discount rate is higher b) Discount rate is lower c) Amount of future value is higher d) Both b and c are correct answers. Question 9 The risk is closely defined as a) The potential variability in the future cash flow b) The chances that an investment value or return will be less than it's expected value c) It has potentially more than one outcome d) All of the above answers are correct Question 10 Risk-return relation is broadly characterised by the following statements a) The higher the risk, the lower the return is. b) The lower the risk, the higher return is. c) Investment with zero risk offers no return. d) The investment in fixed income is less risky than investment in stock markets thus stock offers a higher return than fixed income securities