1. Define risk as the world is used in finance. How does risk differ from certainty and uncertainty? If a possible source of risk is an actual risk factor for an investment, what must be true?
2. All else constant, if your company increases its interest expense, then the amount your company pays in taxes will: (decrease, increase)
3. Assume that the interest rate (i) is positive, and that the future valueis greater than the present value. As you increase i, the number of periods required for your initial investment to become a given future value will: (increase, decrease).