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Question 43 (1 point) Financial economics argues that: 1) All investments by a company should earn the company's weighted average cost of capital. 2) The

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Question 43 (1 point) Financial economics argues that: 1) All investments by a company should earn the company's weighted average cost of capital. 2) The required expected return on an investment is the average cost of debt. 3) The required expected return on an investment increases with the riskiness of the investment. 4) The required expected return on an investment decreases with the riskiness of the investment. Question 44(1 point) Financial economics argues that as the percentage of equity in the capital structure increases: 1) The required return on both equity and debt decrease. 2) The required return on equity decreases and the required return on debt increases. 3) The required return on equity increases and the required return on debt decreases. 4) The required return on both equity and debt increase. Question 45 (1 point) DVA for a bank is most dependent on: 1) The default probabilities of the bank in future time periods. 2) The default probabilities of the bank's counterparties in future times periods. 3) Both A and B. 4) Neither A nor B. Question 46 (1 point) Which of the following is true? 1) FVA is always positive. 2) FVA is always negative. 3) FVA for a transaction is initially zero. 4) None of the above

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