1. Under annual cash flow analysis if projects A and B are of unequal lives but are for a continuing requirement with identical replacement after their respective useful lives, the analysis period is
a. The maximum life of the alternatives.
b. The minimum life of the alternatives.
c. The respective life of each alternative.
d. Always the common project life.
2. A stock's _____________ measures the stocks return relative to that predicted based on its beta, at the time or some event. A. excessive abnormal return B. cumulative average return C. excessive predicted return D. cumulative abnormal return
3. Why does a short call position in a European vanilla option typically have negative delta (Δ)?