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Part 1 | Attempt 1/1 for 10 pts. Why is the CAPM useful? Check all that apply: The CAPM provides an accurate method for determining
Part 1 | Attempt 1/1 for 10 pts. Why is the CAPM useful? Check all that apply: The CAPM provides an accurate method for determining the cost of equity Carefully choosing the risk free treasury means the cost of capital will reflect the duration of the project. The calculation of Beta provides qualitative evidence on the cyclicality of the firm's cashflows and its financial risk The CAPM accounts for the risk that projected cash-flows are potentially too high. Save
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