questions 1.

Which of the following could be considered an example of managers putting their interests over stockholder interests?

A. Refusing to invest in R&D projects

B. Focusing on increasing the market share of the company

C. Acquiring another company

D. Paying a large dividend

question 2

Which of the following statement(s) is/are FALSE?

options A. Unlike the CAPM, the Arbitrage Pricing Model (APM) allows for multiple sources of market risks B. Investors degree of risk preference and risk aversion changes over time C. As investors become more risk averse, they would expect a lower market risk premium D. Fama and French show that firm size and market to book value influence its expected return