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1. A? ________ is a measure of relative dispersion used in comparing the risk of assets with differing expected returns. A. mean B. coefficient of

1.

A? ________ is a measure of relative dispersion used in comparing the risk of assets with differing expected returns.

A.

mean

B.

coefficient of variation

C.

chi square

D.

standard deviation

2.

A call feature is a feature included in all corporate bonds and allows the issuer to repurchase bonds at the market price prior to maturity.

True

False

3.

In order to recognize the interrelationship between financing and? investments, a firm should use? ________ when evaluating an investment.

A.

the weighted average cost of all financing sources

B.

the least costly source of financing

C.

the current opportunity cost

D.

the most costly source of financing

4.

To a? buyer, an? asset's value represents the minimum price that he or she would pay to acquire it.

True

False

5.

In? general, the lower the correlation between asset? returns, the greater the potential diversification of risk.

True

False

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