If a company uses it's wacc as the discount rate for all of the projects it undertakes then the firm will tend to: i. reject some positive net present value projects ii. accept some negative net present value projects iii. favor high risk projects over low risk projects iv. increase it's overall level of risk over time. a. i and iii only b. iii and iv only c. i, ii, and iii only d. i, ii, and iv only e. i, ii, iii, and iv

The questions of economics address which of the following ? check all that apply

Two assets have the following expected returns and standard deviations when the risk-free rate is 5%: asset a e(ra) = 18.5% σa = 20% asset b e(rb) = 15% σb = 27% an investor with a risk aversion of a = 3 would find that on a risk-return basis. a. only asset a is acceptable b. only asset b is acceptable c. neither asset a nor asset b is acceptable d. both asset a and asset b are acceptable

Answer the questions about keynesian theory, market economics, and government policy. keynes believed that there were "sticky" wages and that recessions are caused by increases in prices. decreases in supply. decreases in aggregate demand (ad). increases in unemployment. keynes believed the government should increase ad through increased government spending, but not tax cuts. control wages to increase employment because of sticky wages. increase employment through tax cuts only. increase as through tax cuts. increase ad through either increased government spending or tax cuts. intervene when individual markets fail by controlling prices and production.