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8. Choose the correct option related to the information provided below in the table, Projects Beta Standard deviation 0.4 0.3 Security X 0.8 Security Y
8. Choose the correct option related to the information provided below in the table, Projects Beta Standard deviation 0.4 0.3 Security X 0.8 Security Y 2 A. Security X is defensive while security Y is aggressive B. Security Y has same risk as market while security X has more risk than market C. Security Y is defensive while security X is aggressive D. Security Y has less risk then market while security X has more risk than market 9. Which of the following formulas represents the future value of OMR500 invested at 8% compounded quarterly for five years? A.500(1 + 0.08) B.500(1 + 0.08)20 500(1 + 0.025 D.500(1 + 0.02)20 10. Which of the following is considered to be a deficiency of the IRR? A. It fails to properly rank capital projects B. It could produce more than one rate of return c. It fails to utilize the time value of money d. It is not useful in accounting for risk in capital budgeting
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