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1. In Capital Budgeting Calculations, the Net Present Value method always uses the weighted average cost of capital as the present value interest rate (discount

1. In Capital Budgeting Calculations, the Net Present Value method always uses the weighted average cost of capital as the present value interest rate (discount rate). True or false?

2. If corporate managers are risk averse, they will choose the project with the highest Coefficient of Variation (COV).True or false?

3. Standard Deviation is an absolute measure of risk. True or false?

4. To decrease the overall risk of a firm; products and investment should be made that have positive correlation to each other.True or false?

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