1. Explain why long-term bonds with zero coupons are riskier than short-term bonds that pay coupon interest.
2. Explain why returns on the stock market are used as a benchmark in measuring systematic risk.
3. For a publicly-traded company the goal of the financial manager is to:
A) Maximize the companies profitability
B) Maximize the wealth of the owners by maximizing the per share price of the companies stock
C) Reduce the companies cost and risks
D) Maximize the companies earnings per share