72. The most powerful policy making body of the Fed is the a. Governors of the Fed b. Presidents of the Federal Reserve district banks c. U.S. Treasury d. Federal Open Market Committee (FOMC) 73. The NPV profile of a project shows at various discount rates a. PV of cash flows b. NPV of cash flows c. IRR d. P1 74. A similarity between bond and preferred stock is that both a. are issued by the same company b. have fixed cost of financing c. has financing cost which is tax deductible 76. As a company becomes more risky, value of its stock, according to Gordon's model, a. increases b. decreases c. does not change 77. If a security is over-valued, the security would increase in the market and its price would go a. demand for; up b. demand for; down c. supply of; up d. supply of; down 78. The appropriate measure of risk of a security is its a. total risk b. standard deviation c. coefficient of variation d. systematic risk