1.During 2022, which of the following has had the smallest negative impact on equity returns?

A.Inflation

B.The Russian Invasion of Ukraine

C.COVID/Supply Chain Issues

D.US Tax Policy

2.This is a true story that happened this month (May 2022). Harley-Davidson is suspending manufacturing for two weeks and has shut down operations in Wisconsin and York, Pennsylvania due to a supplier problem. According to a company press release, the decision was made "out of an abundance of caution, is based on information provided by a third-party supplier to Harley-Davidson late on Tuesday concerning a regulatory compliance matter relating to the suppliers component part. This is an example of

A.consumer acceptance risk

B.supplier loop reversal risk

C.systematic market risk

D.Idiosyncratic firm-specific risk

3.Earlier this year, you purchased $5,000 worth of an Spartan Power common stock. At the same time, your sister purchased $5,000 of Spartan Power's senior debt with a 5% coupon at par. At the time of purchase, he bond was rated AAA. Last week the company announced it invented a new battery that would likely go into every new electric car manufactured over the next 10 years. Which investment has the greatest chance of earning a large return based on the new invention?

A.Your sister's Bond Investment

B.Both have equal probability of receiving the same amount

C.Your common stock investment