Saved Question 1 (4 points) Listen According to the capital asset pricing model, the amount of systematic risk present in a particular risky asset relative to that in the market portfolio is measured by the: 1) risk premium. O2) beta coefficient. 3) standard deviation. 4) variance. Question 2 (4 points) 5 Listen Among the following behaviors, which ones are evidence of investors risk aversion? 1- Investors require higher rates of returns for investments that demonstrate higher variability of returns. II- when investors become more risk averse, they require higher market risk premium, which should decrease the slope of the security market line. III- Investors required rate of return should increase as a response to an increase in the total systematic risk in the market. O 1) I and II 2) I and III O 3) II and III 4) I, II and III Question 3 (4 points) Listen The cash cycle should increase with: 1) Increase in carrying costs O2) Decrease in inventory period 03) Decrease accounts receivable period 4) Decrease in accounts payable period Question 4 (4 points) Listen In case the firm runs into financial distress, which one of these actions is not associated with cost of financial distress? Which of the following is least likely to be a component of a firm's expected cost of financial distress? 1) Legal fees associated with filing a chapter 11 restructuring. O2) Reduced accounts payable period due to stricter suppliers' credit policy. 3) The CEO and CFO spending effort preparing a restructuring plan. 4) Costs of goods sold