1. Diversification into other assets with lower correlation coefficient can eliminate: a) Systematic risk

b) the effects of high beta

c) the market risk.

d) unique risk.

e) all investment risk.

2. NPV is better than IRR as decision criteria especially when:

a) cash flows are even.

b) cash flow are mostly at the beginning of the project.

c) cash flow is negative at some point in the project.

d) cash flows are mostly at the end of the project.