Bill and Mary own a small chain of high fashion boutiques that represent almost 100 of their net
worth. When considering capital budgeting projects for their boutiques, the appropriate measure of
risk is
A) systematic risk. B) contribution-to-firm risk.
C) beta risk. D) project standing alone risk.
Question 2
When you pay off the principal and all of the interest at one time at the maturity date of the loan, we call this type of loan a/an ________.
A) amortized loan
B) interest-only loan
C) discount loan
D) compound loan
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