9. The beta of ABC Co. is equal to the slope of: a. the characteristic line for a plot of returns on the market index versus returns on short-term Treasury notes. b. the arbitrage pricing line. c. the security market line. d. the characteristic line for a plot of ABC Co. returns against the returns of the market portfolio for the same period. 10. A past cash outflow or cost that is not incremental to a particular project is called: a. an incidental cost. b. an historic cost. c. a differential cash flow. d. a sunk cost. 11. Which of the following is not a characteristic of an efficient market? a. Investors can frequently make profits by predicting asset market prices that are different from intrinsic values. b. The market value of all securities at any one instance in time fully reflect all available information. c. Investors act rationally. d. The forces of demand and supply work