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If an investment opportunity has a larger standard deviation it should be considered: a) no more or less risky than an investment with a lower

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If an investment opportunity has a larger standard deviation it should be considered: a) no more or less risky than an investment with a lower standard deviation. Ob) more risky than an investment with a lower standard deviation. c) less risky than an investment with a lower standard deviation. A negative value for AFN (additional financing needed) suggests: a) the firm should cut dividends immediately to remedy the funding gap. b) the firm has a very large funding deficit. c) the firm cannot sustain its current growth trajectory without additional external funding. d) the firm needs to issue new equity or new debt to support their growth. e) the firm has a surplus of funds. You have the choice of two investments: Investment A and Investment B. Investment A offers an expected return of 9.75% with a standard deviation of 18%. Investment B offers an expected return of 10% with a standard deviation of 25%. If you are a rational investor, which investment should you choose? a) Investment A b) Investment B Anadarko Petroleum Corporation (Ticker: APC) has a beta of 0.92. This implies that the market. this security has risk. a) greater than b) equal to... Oc) less than d) cannot be determined Magellan Global recently reported Sales of $3.25 million. The firm's FCF was $325,000 which is expected to grow at about 3.5% annually going forward. The firm also has ST Investments of $750,000, long-term debt of $1.5 million, total assets of $4 million, and no preferred stock. The firm 1 million common shares outstanding and 1.5 million shares authorized. What is the intrinsic value of equity per share for the firm? a) $4.055 b) $2.056 c) $7.055 d) $3.89 e) $4.805 In general, if the interest rate or required return on an investment increases, a) the present value or current price of the investment decreases. b) the value may increase or decrease -- it just depends on market sentiment at the time. Oc) the present value or current price of the investment increases. d) the value is unaffected by a change in interest rate. e) the future value of the investment decreases

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