Select the most accurate statement:

a.

Both the Dividend Discount Model (DDM) and the Free Cash Flow to Equity (FCFE) model estimate the intrinsic value of equity

b.

The Free Cash Flow to Equity (FCFE) model cannot be used to estimate the entire value of the firm that uses debt

c.

The Free Cash Flow to Firm (FCFF) model can be used to estimate the entire value of the firm that uses debt

d.

All of the above statements are correct.

Which of the following statements is correct?

a.

A comparison of two investment funds is normally based on a comparison of their historical returns

b.

It does not matter whether investors use a Sharpe or a Treynor ratio for their investment decisions since both approaches lead to the same conclusions

c.

Taking into account the portfolio risk level when choosing between two alternative investment portfolios is not a correct approach

d.

None of the above