1. To calculate the Net Present Value (NPV) of an investmetn project that has the same risk as the firm's existing assets, we argued in class that one should use ______ as the appropriate discount rate.
A) The expected return on the firm's stock
B) the firms weighted average cost of capital
C) the expected return on the firms bonds.
2. If you want to pursue a “short volatility” strategy, you are more likely to profit when stock markets are
A. calm and moving higher.
B. calm and moving lower.
C. agitated and moving higher.
D. agitated and moving lower.