1. Risk in finance:
a. is variability in return.
b. can be decomposed into business-specific and market components.
c. will be accepted by some investors if higher expected returns are offered in compensation.
d. All of the above
2. The __ of a resource is its value in its best alternative use and is included in capital budgeting analysis.
a. opportunity cost
b. sunk cost
c. incremental cash flow
d. None of the above