Question
Choose a false statement and give explanation. SML provides hurdle rate for internal projects SML graphs individual asset risk premiums as function of asset risk.
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Choose a false statement and give explanation.
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SML provides hurdle rate for internal projects
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SML graphs individual asset risk premiums as function of asset risk.
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Alpha is abnormal rate of return on security in the excess of the predicted by CAPM.
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CAPM use SCL as benchmark for fair return on risky asset.
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Financial Reporting And Statement Analysis A Strategic Approach
Authors: Clyde P. Stickney, Paul Brown, James M. Wahlen
5th Edition
032418638X, 978-0324186383
