1) One problem with using negative values for the proportion invested in the risk less asset to represent a borrowed amount is that the implied borrowing rate of interest is the same as the __________.A. prime rate of interestB. current rate of interestC. lending rate of interestD. nominal rate of interest2) If you were willing to bet that the overall stock market was heading up on a sustained basis it would be logical to invest inA. high beta stocksB. low beta stocksC. stocks with large amounts of unique riskD. stocks that plot below the security market line3) Stony Products has an inventory conversion period (ICP) of about 70 days. The receivables collection period (RCP) is 30 days. The payables deferral period (PDP) is about 40 days. What is Stonys cash conversion cycle (CCC)?A. 100 daysB. 60 daysC. 140 daysD. 70 days4) The main source of short-term operating capital is _________.A. trade creditB. bank loansC. bondsD. sale of treasury stock