1. Which of the following statements accurately describe risk management?

Risk management should not matter in perfect capital markets.

Managers will not reduce the firms risk to reduce their own career risk.

None of the other statements are correct.

Removing the poor outcomes without affecting positive outcomes will decrease expected returns.

More than one of the other statements are correct.

2.

2.Which of the following statements accurately describe takeovers?

Takeover activities usually occur in waves.

Takeovers that result in market monopolies can be subject to approval be government regulators.

One disadvantage of cash offers is that it can makes the offer more likely to be rejected by the target firms shareholders.

More than one of the other statements are correct.

None of the other statements are correct.