Which of the following statements about the various kinds of risks is correct?
A. Economic risk is a market risk, hence it should not be rewarded by the market.
B. A firm's default risk is a diversifiable risk, hence it should be rewarded by the market.
C. Exchange rate risk is a diversifiable risk, hence it should not be rewarded by the market.
D. Inflation risk is an unsystematic risk, hence it should not be rewarded by the market.
E. Interest rate risk is a systematic risk, hence it should be rewarded by the market.
Answer: E
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An electrical power system consists of four major components with reliabilities of 0.99, 0.90, 0.80, and 0.95. Compute and indicate the overall reliability of the electrical power system.
A. 0.8125 B. 0.9856 C. 0.7645 D. 0.6772
Most audiences grow restless after ____ minutes, so use that as the maximum length for thepresentation.
A. 5 B. 10 C. 20 D. 30
Table 10-3 presents an integer programming problem. If the optimal solution is used, then only two of the alternatives would be selected. How much slack would there be in the third constraint?
A) 1000 B) 5000 C) 3300 D) 8000 E) None of the above
A principal works on behalf of an agent.
Answer the following statement true (T) or false (F)