According to your book Financial Management for Small Businesses, 2nd OER Edition, In the management of cash and marketable securities, why should the primary concern be for safety and liquidity rather than maximization of profit?

Question1. Arbitrage is limited because the wealth of arbitrageurs is limited.  Discuss this statement in the context of those who are managing their own money and those who are managing other people’s money. Question 2. Differentiate the following terms and concepts: a,Primacy and recency effects b. Salience and availability c. Fast-and-frugal heuristics and bias-generating heuristics d. Autonomic and cognitive heuristics  Please include refernces and in text citations.

Essay 2. What is the relationship between financial crises, regulation and asymmetric information?

Which of the following statements is FALSE?i. Using the payback rule, you can calculate how much profits are earned over the investment period.ii. The IRR is sensitive to the timing of the cash flows.iii. Shareholders have the first claim on the cash flows of the company.