FIN 571 NERD Education Specialist /fin571nerd.com FIN 571 NERD Education Specialist /fin571nerd.com | Page 17

rather than semiannually Question 20 The excess return you earn by
moving from a relatively risk-free investment to a risky investment is
called : A. Arithmetic average return. B.
Geometric average return. C.
Time premium. D.
Risk premium. E.
Inflation premium. Question 21 A firn has a total debt
ratio of . 47. This means the firn has 47 cents in debt for every: A. $ 1 in
fixed assets. B.
$ 53 in total equity. C. $ 1 in total equity. D. $ 1 in
current assets. E.
$ 53 in total assets. Question 22 A ll else equal, the
contribution must increase as: A. Both the sales price and variable cost per
unit increase. B.
The variable cost per unit declines. C. The fixed
cost per unit declines. D. Sales price per unit declines. E. The sales
price minus the fixed per unit increases. Question 23 A project has an
initial cost of $2,250.The cash inflows are $0,$500,