1a)Find the sample standard deviation for a security that has three one –year returns of 5%, 10%, and 15%.

A) 10.00%

B) 4.08%

C) 3.16%

D) 5.00%

1b) Which of the following investment evaluation tools is considered to be the best capital budgeting decision tool?

A) Internal Rate of Return

B) Net Present Value

C) Payback Period

D) Modified Internal Rate of Return

1c).Which of the following type of firms are most likely to payout cash dividends?

A) large mature firms

B) rapidly growing firms

C) Firms encouraging innovation

D) Firms expanding their operations