(A) specific risk
(B) security risk
(C) market risk
(D) beta

(A) managers are the principals
(B) directors are the principals
(C) shareholders are the principals
(D) shareholders are the agents

(A) management problem
(B) area of the board of directors
(C) risk
(D) agency problem

(A) financing decision
(B) capital budgeting decision
(C) liquidity decision
(D) none of these

(A) Investment decision
(B) financing decision
(C) offering loan
(D) capital structure

(A) mean
(B) variance
(C) standard deviation
(D) kurtosis

(A) it is dangerous
(B) it has low returns
(C) its returns are uncertain
(D) its raw material is unavailable

(A) no
(B) all
(C) marginal
(D) only a few

(A) Analysis predicts price pattern
(B) No money machines
(C) No arbitrage opportunities
(D) Security prices reflect true underlying value of assets

(A) it is dangerous
(B) it has low returns
(C) its returns are uncertain
(D) its raw material is unavailable