1. What is the most significant advantage of incorporating a business versus operating it as a partnership?
1) Access to bailout money from the federal government
2) Limited financial liability of the shareholders
3) Exemption from federal taxes
4) Charitable immunity
2. Which of the following describes a project being considered by a firm that plots above the security market line.
A. The project has a positive net present value.
B. The project's beta is too high.
C. The project has high project risk.
D. The project has a negative net present value.
E. Both C and D
2. Over the past 4 years an investment returned 18%, 9%, 12%, and 15%. What is the standard deviation of returns?