Which of the following decision model does not take into account of the time value of money?

		Discounted Payback Period
		Net Present Value
		Profitability Index
		Payback period

Which of the following decision model takes into account of all the cash flows of a project.

		Payback period
		Discounted payback period
		Profitability index
		None

The discount rate that is used for calculating the present values of a project's cash flows is the rate of return on other investments, which have lower risk than that of the project.

True

False

Diversification helps the investor to significantly reduce the standard deviation of their investment as they create a portfolio by allocating their investment to different securities.

True

False

Variance of an investment's returns shows the exact percentage of the investment's risk.

True

False