Question Details

Generally, investors expect that projects with high expected net present values 



Question 1
Generally, investors expect that projects with high expected net present values also will be projects with
a)	low risk
b)	high risk
c)	certain cash flows
d)	short lives
Question 2
The net present value of an investment represents 
a)	an index of the desirability of the investment
b)	the expected contribution of that investment to the goal of shareholder wealth maximization
c)	the rate of return expected from the investment
d)	the rate of return on equity
Question 3
The ____ is the ratio of ____ to the ____.
a.	standard deviation; covariance; expected value
b.	coefficient of variation; expected value; standard deviation
c.	correlation coefficient; standard deviation; expected value
d.	coefficient of variation; standard deviation; expected value
Question 4
If demand were inelastic, then we should immediately:
a.	cut the price.
b.	keep the price where it is.
c.	go to the Nobel Prize Committee to show we were the first to find an upward sloping demand curve.
d.	raise the price.
Question 5
Producers' goods are:
A.	consumers' goods
B.	raw materials combined to produce consumer goods
C.	durable goods used by consumers
D.	always more expensive when used by corporations




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