QUESTION 1 Which of the following statements is correct? Assume everything else equal. a. Riskier assets are more valuable than (preferred to) less risky assets. b. Investors generally prefer short-term high-risk assets investments. O c. The sooner cash is received, the more valuable it is. Od Investors generally receive higher returns on investments with low risk than investments with high risk. O e Riskier assets always have higher market values. QUESTION 2 The success of financial institutions depends on a the understanding of the factors that cause interest rates and other returns in the financial markets to rise and fall Ob the awareness of the shareholders regarding the regulations that affect public corporations c. the expectations of long-term investors in the company Od the environmentally responsible behavior of the shareholders of corporations e the prior knowledge of the decisions that public corporations make concerning their cash flows