Author Question: Which kind of risk affects the opportunity cost of capital? A) Nondiversifiable risk B) ... (Read 43 times)

casperchen82 · **on:** Jul 1, 2018

Which kind of risk affects the opportunity cost of capital?

A) Nondiversifiable risk
B) Diversifiable risk
C) Both nondiversifiable and diversifiable risk
D) The risk inherent in riskless assets such as U.S. Treasury bills
E) The risk inherent in riskless portfolios such as broad stock market holdings

Question 2

Refer to Scenario 10.7. Suppose that the firm chooses to produce 200 ink pads. At this level of output the demand for ink pads is

A) inelastic.
B) unit elastic.
C) elastic.
D) unit elastic.