Final 1. The main questions addressed by the study of finance include all except a. What long-term investments does a firm have? b. How should the firm raise money to fund its long-term investments? c. What long-term investments should the firm undertake? d. How can the firm best manage its cash flow as they arise in its day-to-day operations? 2. Which of the following are the basic principles of finance? i. There is a risk-return trade-off ii. Market prices do not reflect information iii. Cashflow, but not profit, is the source of value iv. There is time value for money a. i, ii, iv b. i, ii, iii c. ii, iii, iv d. i, iii, iv th 3. The process of converting debts into securities, which are then bought and sold in the financial market is known as a. asset trading b. debt financing c. securitization 1 d. leveraging