Finance Questions?

Question

The Yield Curve:
A. Relates the yield to maturity and the time to maturity of a security
B. Can never slope downward
C. Relates the yield to maturity to the cost of capital
D. Relates the yield to maturity to the risk of a security
E. Represents the trade-off between risk and reward of a security.


2. Capital budgeting decisions focus on which area of a company balance sheet?
A. Short-term liabilities
B. Stockholders?equity
C. Long-term liabilities
D. Short-term assets
E. Long-term assets

Answer 1

all I know is #2 B I think

Answer 2

1-E (unsure) 2-B