Dear tutor,

Could you tell me answers of 5 MC questions

Thank you so much.

1. The most important function of a financial market is to

A. facilitate the follow of funds between lenders and borrows

B. provide a market for shares

C. provide information about an issuing company's financial situation

D. secure profits for brokers and agents

E. provide information about share

2. Financial risk is define as the

A. credit risk associated with the firm's borrowing

B. equity risk that is derived froma firm's daily operation

C. equity risk that come from the capital structure of firm

D risk associated with a firm's level of surplus cash

E. probability that a firm's WACC will increase

3. Which is correct about WACC

A. WACC decreases when the tax rate decreases for al firms that use debt

B. a reduction in the risk level of a firm will tend to increase firm WACC

C. a 5% increase in a firm's D/E ratio will tend to increase from WACC

D. WACC can be used as required return for all new project with similar risk as the firm

E. an increase in the market risk premium tends to decrease firm WACC

4. When a financial market reflects all the available information in the prices of the securities,

the market is referred to as a(n)

A. normal distribution

B. primary market

C. efficient capital market

D. delayed reaction market

E. current yield market

5. The higher the systematic standard deviation of a security, the (lower or higher) the expected rate of

return and the (lower or higher) the risk.