Question Details

If demand were inelastic, then we should immediately



1.	The standard deviation is appropriate to compare the risk between two investments only if
a)	the expected returns from the investments are approximately equal
b)	the investments have similar life spans
c)	objective estimates of each possible outcome is available
d)	the coefficient of variation is equal to 1.0
2.	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
3.	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
4.	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
5.	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.




Business Assignment Help, Business Homework help, Business Study Help, Business Course Help