The ____ a Project's Variability in Cash Flows, and the ____

question 47

Multiple Choice

The ____ a project's variability in cash flows, and the ____ the positive correlation between the project's cash flow and the MNC's cash flow, the lower the risk of the project.

• A) higher; higher
• B) higher; lower
• C) lower; lower
• D) lower; higher

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Definitions:

Indorsements

Signatures or stamps placed on a document (often a financial document) that specify the legal transfer of rights from one party to another.

Unqualified Indorsement

An endorsement on a financial instrument, like a check, that doesn't limit payment to any particular individual or entity.

Indorser

A person who transfers an instrument by signing (indorsing) it and delivering it to another person.

Guaranteeing Payment

The act of promising to fulfill the payment obligations of another party if they fail to pay as agreed.