1. Sources of risk for an investment include - (Required)

1. Business risk and financial risk
2. Coefficient of variation of returns and financial risk
3. Variance of returns and coefficient of variation of returns
4. Variance of returns and business risk
5. All the options given are correct.

2. Consider the case of Simon Corporation. For financing, it has not taken any debt capital from any sources. So the financial risk of Simon Corporation would be -(Required)

1. Close to one
2. More than one
3. None of the options is correct.
4. All the options are correct except for "None of the options is correct."
5. Zero

3. Which of the following is not a component of the required rate of return? (Required)

1. Risk of the investment
2. Time value of money
3. Holding period return
4. Expected rate of inflation
5. All of the options are components of the required rate of return

4. An unsystematic risk refers to the risk that is - (Required)

1. Due to systemic risk factors
2. Diversifiable
3. Undiversifiable
4. None of the options is correct
5. Due to market risk

5. Suppose you bought a GM corporate bond on January 25, 2010 for $750, on January 25, 2014 sold it for $650.00. What was your annual holding period yield? (Required)

1. 0.0333
2. 0.3534
3. -0.0466
4. None of the options given.
5. - 0.1333