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1. Cost of capital is the maximum return that manager need to achieve when making investment decisions. A question requiring a 'True/False' answer. 2. For
1. Cost of capital is the maximum return that manager need to achieve when making investment decisions.
A question requiring a 'True/False' answer.
2. For an unlevered firm, the cost of capital is equal to the cost of equity.
A question requiring a 'True/False' answer.
3. If there is one asset that everyone wants to invest, it should be market portfolio.
A question requiring a 'True/False' answer.
4. The beta of market portfolio is equal to 2.
A question requiring a 'True/False' answer.
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