Question 23 2 pts Statement 1: The Profitability Index approach may lead to incorrect decisions in comparisons of mutually exclusive projects. Statement 2: Because the actual Net Present Value is unknown, firms typically use multiple criteria to evaluate a proposal. Both statements are false. Statement 1 is false and Statement 2 is true. Statement 1 is true and Statement 2 is false. Both statements are true. Question 25 2 pts There are two central lessons that emerge from a study of market history. First: there is a reward for bearing risk. Second: The greater the potential reward is; the greater is the risk. The excess return required from an investment in Small stocks over that from an investment in U.S. Treasury bills is called the Average return. Excess return. Return premium. Variance. Risk premium. Question 26 2 pts Capital markets are probably efficient than most real asset markets. Less. More. Not at all as. None of the above