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1. Which of the following is the objective of a firm? ( Circle the most correct ) a) Maximize book value of equity. b) Maximize

1. Which of the following is the objective of a firm? (Circle the most correct)

a) Maximize book value of equity.

b) Maximize earnings per share.

c) Maximize market value of equity.

d) Maximize earnings per share.

e) Both b) and c)

2. The Optimal Sharpe Ratio for all rational investors according to the Markowitz Portfolio Optimization theory depends on their level of risk-aversion.

TRUE FALSE

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