What type of risk is avoidable through proper diversification?*

A. Portfolio risk

B. Systematic risk

C. Unsystematic risk

D. Total risk

E. None of the above

3. If the project standard deviation is high*

A. It has high risk

B. It has low risk

C. It is better to accept the project

D. All except B

1.Which of the following financial management decision is concerned with the management of the source of capital?*

A. Investing activity

B. Financing activity

C. Portfolio management

D. Capital budgeting decisions

4.Which one of specific cost of capital has no flotation cost*

A. Cost of Common stock

B. Cost of Retained earnings

C. Cost of preferred stock

D. Cost of debt

2. Of the following alternatives which one is considered as an investor?*

A. Bondholders

B. Preferred stockholders

Common stockholders

D. All

E. none of the above