Question: Consider the following two statements concerning risk analysis: 1. Sensitivity analysis provides clear decision rules concerning acceptance or rejection of an investment project. 2. The

Consider the following two statements concerning risk analysis: 1. Sensitivity analysis provides clear decision rules concerning acceptance or rejection of an investment project. 2. The risk-adjusted discount rate adds a risk premium to the expected rate of inflation to derive a discount rate for investment projects. Which one of the following combinations (true/false) relating to the above statements is correct? a. none of the answer provided are correct O b. Statement 1 False Statement 2 True O c. Statement 1 False O d. Statement 1 True O e. Statement 1 True Statement 2 False Statement 2 True Statement 2 False

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