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1. We routinely assume that investors are risk-averse return-seekers; i.e., they like returns and dislike risk. If so, why do we contend that only systematic risk and not total risk is important?

2. A corporation has a stock price of $150 per share today. If it has a "5-for-4" stock split that is effective tomorrow, what would happen to the stock price?

a. It would rise to $180.

b. It would fall to $148.75

c. If would fall to $120.

d. It would rise to $187.50.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92750410

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