Question 10

When evaluating two independent investments, the NPV approach is a reliable capital budgeting technique without any potential problems.

a. True

b. False

Question 13

Which of the following statements about portfolio is not true?

a. The expected return of a portfolio is the weighted average of the expected returns of all individual stocks in the portfolio.

b. Portfolio risk is the weighted average of the standard deviations of all individual stocks in the portfolio.

c. Portfolio beta is the weighted average of the beta values of all individual stocks in the portfolio.