Question 10 (1 point)Which of the following statements is/are true? (Multi-Select Question: Choose all that apply.)

A) Diversification can eliminate market risk, but not firm-specific risk.

B) The correlation between stocks affects both the expected return and variance of a portfolio.

C) All portfolios on the capital market line are a combination of the risk-free asset and the market portfolio

D) Portfolios on the security market line can contain diversifiable risk

E) Beta measures both firm-specific and market riskQuestion

13. If the managers engage in significant shirking and consumption of many corporate perquisites (perks), then this is consistent with ...

A) corporate social responsibility

B) stakeholder satisfaction

C) shareholder wealth maximization

D) the agency costs of equity

E) the agency costs of debt

Question 14 (1 point)Which of the following statements is/are true? (Multi-Select Question: Choose all that apply.)

A) Equity financing may increase financial distress or bankruptcy costs

B) Shareholders will prefer to invest in a firm near bankruptcy

C) More leverage may result in the CEO spending more on perks

D) For a firm near bankruptcy, shareholders will prefer to invest in riskier projects

E) For a firm near bankruptcy, shareholders will prefer to receive cash dividends

please and all