jent Name: 6. For a risky asset, a stockholder's consideration for their expected return should consider (a) a risk premium (b) a risk-free interest rate (c) an inflation premium (d) all of the above 7. The three statistical measures of risk variance include which of the following (a) Mean (b) Range (c) Standard deviation (d) Variance The elements of making an equipment replacement decision include which of the following: 8. (a) Planning horizon (b) Salvage valve Anticipated improvements to technology (c) (d) Revenues& operating costs over the life of an asset When assessing operating costs as they pertain to replacement decisions, which of the following is/are not true statements: 9. Opportunity cost approach views the net proceeds from the sale as (a) the opportunity cost of keeping the defender. (b) The most favorable life of each asset is defined as the economic service life of the asset Because O&M costs generally increase, the salvage value of an (c) asset also increases with age. Both (a) and (b) are correct statements (d)