When evaluating whether an investment in a control system is worthwhile, the term (beta) in the formula

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When evaluating whether an investment in a control system is worthwhile, the term $\beta$ in the formula used to calculate the discount rate is:

a. The risk-free rate of return

b. Weighted cost of capital of the firm investing in the control system

c. The coefficient obtained when the returns on the security of a firm that designs and implements similar types of control systems are regressed against returns on the market

d. The coefficient obtained when returns on the market portfolio are regressed against the risk-free rate of return

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Information Systems Control And Audit

ISBN: 9780139478703

1st Edition

Authors: Ron Weber

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Question Posted: May 16, 2024 12:00 PM

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When evaluating whether an investment in a control system is worthwhile, the term (beta) in the formula

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Information Systems Control And Audit

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