3--What is the main risk factor in the investment decision model that passive investors use in the market?

A) to keep a stable income I/S, managers avoid investment on R&D

B) Firm's stock price movement compared to the market index

C) Firm's performance

D) Industry trends and seasonality

E)Financial analysis opinion for firm's future

4---What is the objective of financial reporting according to SFAC 8?

A) Provide information that is useful to management in making decisions

B) Provide information that clearly portrays nonfinancial transactions

C) Provide information about the reporting entity that is useful to potential equity investors, lenders, and other creditors

D) Provide information that excludes claims to the resources