1. Standard deviation of portfolio returns is a measure of _________. total risk
relative nonsystematic risk
relative systematic risk
relative business risk
2. When choosing a capital structure, the objective of the firm should be to
a) choose the one that maximizes the firm's WACC
b) choose the one that results in the greatest possible interest tax shield
c) choose any capital structure since capital structure is always irrelevant
d) choose the one that maximizes the current value of the stock
3. Which of the following methods for raising equity capital is not available to not-for-profit corporations?
A. Retained earnings
B. Government grants
C. Private contributions
D. Religious organizations
E. Common stock sales