Name 53. Market risk is the most important risk because it affects stock prices and it is: a. The most difficult to measure b. The easiest to measure c. Not able to be measured ways to measure stand-alone risk in capital budgeting are Monte Carlo Simulation, Sensitivity Analysis, and: a. b. c. Comparing interest rate risk and reinvestment rate risk Scenario Analysis Surveys of Experts 55. A risk analysis technique that shows how much a project's NPV will change in response to a given change in an input variable, such as sales, when all other factors are held constant, is: a. b. c. Scenario analysis Monte Carlo Simulation Sensitivity analysis 56. A risk analysis technique in which the best and worst-case NPVs are compared with the project's base-case NPV, is: a. b. c. Scenario analysis Monte Carlo Simulation Sensitivity analysis 57. A risk analysis technique that uses a computer to simulate future events and thereby estimate a project's profitability and riskiness, is: a. b. c. Scenario analysis Monte Carlo Simulation Sensitivity analysis 58. Two methods to plan the additional financing needs of a corporation are the forecasted financial statements (FCS) method: a. b. c. The Capital Asset Pricing Model Additional funds needed (AFN) equation The Security Market Line 5 points extra credit: If a firm can structure a project such that expenditures can be made in stages rather than all at the beginning, how would this affect the project's risk and expected NPV? Explain