51. An "index" fund is a mutual fund which a. invests in all stock listed on the exchange b. invests in stocks of a particular industry or sector c. mimics the performance of a target index 52. Calculation question 53. Maximization of profit is not a good goal for a firm because a. it ignores risk b. it is a short term goal c. profit is not uniquely defined d. all of the above 54. The NPV profile of a project shows that as the project's required rate increases, its NPV a. increases b. decreases I c. Remains the same 55. In a common size balance sheet, each item is expressed as a percentage of the firms a. sales b. total assets c. total liabilities d. total equity 56. Debt ratio of a firms is 60%. This means that the company borrowed 60 cents of every dollar of a. sales b. total assets c. equity 57. When a bond sells at a "premium" (i.e., for more than $1,000), the yield to maturity (YTM) on the bond would be a. the same as the coupon rate b. higher than the coupon rate c. lower than the coupon rate