1.)Which of these is NOT a valid preference that will affect your ability to get Venture Capital Financing?

A.)More cash is preferred to less cash

B.)Cash later is preferred to cash sooner

C.)Less risky cash is preferred to more risky cash

D.)Founders' goals regarding growth, control, liquidity, and harvesting

2.)You're sifting through stacks of unread business plans on your desk at your VC firm. A business plan, covered in rhinestones and smelling vaguely like the inside of an old Disco, catches your eye. You note the following characteristics - which one of these is the most positive?

A.)Low Burn Rate

B.)Low TTC

C.)Low Time to OOC

D.)Founder demands a 'lifestyle' firm

3.) Which one of these statements IS NOT a lesson from the house money effect? (5 pts)

A) There are no "paper profits." Your profits are yours.

B)The price you paid for stock a year ago is not relevant.

C) All your money is your money. You should not separate your money into bundles labeled "my money" and "house money."

D) Whether you lose money from your original investment or lose money from your investment gains is irrelevant

4.) Which of these BEST describes the 'Illusion of Knowledge'? (5 pts)

A) If an investment problem is presented in two different (but really equivalent) ways, investors often make inconsistent choices.

B) Your dog Rufus, in a fit of canine temper, bites your best friend, Hoss; the same day, you receive a 78 on your Marketing Final. Meanwhile, a house in Grants burns down. Coincidence?

C) You believe that you are able to make more informed judgments than other investors.

D) Associating a stock with its purchase price, i.e., fixating on a reference price

5.) You're looking for an ETF in the Wall Street Journal, and you decide to put all of your money into an ETF that has done really poorly recently, but you think that the fund is 'due' to bounce back. What effect are you falling for? (5 pts)

A) Gambler's Fallacy

B) The Hot-Hand Fallacy

C) The Cold-Foot Quandary

D) Clustering Illusion