1. If the reward-to-risk ratio of an asset is higher than that of the security market line (SML), then the price of the asset will and its expected return will Select one: a. fall; fall b. rise; fall c. fall; rise d. rise; rise 2. Which of the following is INCORRECT about working capital? Select one: a. It measures the company's financial health based on the amount of long-term debt. b. Accounts payable have a direct effect on the level of working capital. c. An increase in accounts receivable will increase working capital. d. It measures the company's liquidity and short-term financial health. 3. Prolific Co. has an inventory period of 81 days, an accounts payable period of 41 days, and an accounts receivable turnover rate of 13. What is the length of the cash cycle? Assume 364 days in a year. Select one: a. 96 days b. 150 days c. 68 days d. 71 days