1. Which of the following statements about the beta coefficient of a stock is true?

A. A beta of > 1 implies that the stock's volatility is less than that of the market.

B. A beta of < 0 implies that the stock tends to move against the market.

C. A beta of 1 implies a volatility independent of the market’s volatility.

D. A beta of < 1 implies that the stock’s movement is independent of the market.

2. A positive NPV implies an:

A. unacceptable project on a stand-alone basis.

B. the best project available.

C. unacceptable project base on its future inflow.

D. acceptable project on a stand alone basis.