Which of the following are examples of unsystematic risks? I. The Federal Reserve announces it will lower interest rates to boost the economy Il. The inflation rate increases unexpectedly. IIl. VW announces a recall. IV. The CEO of a firm retires. A. I only. B. Il only. C. Ill only. D. IV only. E. Il and IV only F. I and Il only. G. IlI and IV only. H. I, IlI, and IV only. The H. Wolowitz Corporation has been presented with an investment opportunity that will yield cash flows of $30,000 per year in Years 1 through 4, $35,000 per Years 5 through 9, and $40,000 in Year 10. This investment will cost the firm $150,000 today, and the firm's cost of capital is 10 percent. Assume cash flows occur evenly during the year, 1/365h each day. What is the payback period for this investment? A. 5.23 years B. 4.86 years C. 4.00 years D. 6.12 years E. 4.35 years The main difference between a debenture and an indenture is that the former (a debenture) is unsecured, while an indenture is debt secured by assets that the firm owns. A. True B. False the expected yield . On a junk bond the calculated yield to maturity is generally to maturity. A. greater than B. exactly equal to C. less than Adequate portfolio diversification can be achieved by investing in several companies in the same industry. 1. a. True. b. False