Question 8. A firm of actuaries has previously operated as a partnership. The firm is considering raising a large loan in order to buy office premises instead of renting them. One of the partners has suggested incorporating the firm as a limited company in order to avoid personal risk for the partners at minimal cost. Explain whether incorporation as a limited company is likely to achieve the objectives suggested by the partner. [4 marks) Question 9. Explain why the market prices of shares are generally regarded as unbiased reflections of the shares'"true" value. (4 marks) Question 10. Why should projects that display a positive net present value when calculated at the company's (opportunity) cost of capital add to the current value of shareholders' wealth? (4 marks)