1. Stocks are different from bonds because. a. stocks, unlike bonds, are a source of funds. b. Stocks, unlike bonds represent ownership rights in a firm. c. stocks, unlike bonds, give owners legal claims to coupon payments. d. Stocks, unlike bonds, increases the earnings per share of a firm. 2. If you wish to quantify, in dollar terms, how stockholder wealth will be affected by undertaking a project under consideration you should use , net present value b. the average accounting return c. internal rate of return d. the profitability index 3. A portfolio is a. a group of assets, such as stocks and bonds, held as a collective unit by an investor b. the expected return on a risky asset c. the expected return on a collection of risky assets d. the variance of returns for a risky asset may be defined as a measure of uncertainty in a set of potential outcomes for an event in which there is a chance for some loss a. Security market line b. Diversification c. Risk d. Collaboration 5.. What term is used to describe the promised interest payments of a bond, paid periodically until the maturity date of the bond? a. Yield to maturity b. Par value c. Sinking fund d. Coupon 6. The written agreement that contains the specific details related to a bond issue is called t bond a. Debenture b. Trustee certificate c. Document d. Indenture