Question 12 2 pts In capital budgeting analysis, which of the following approaches would likely be the most useful in identifying the one forecast variable that, when measured with error, has the biggest impact on project profitability. O Sensitivity analysis O Simulation (Monte Carlo) analysis O Scenario analysis O Break-even analysis Strategic options analysis > Question 11 2 pts Which of the following is true regarding portfolios of imperfectly correlated assets? There is little risk reduction benefit to be gained after adding the 3rd or 4th additional stock. O The diversifiable risk of the portfolio is the only risk that matters for its efficient pricing in the market. The portfolio will have less risk than any of the individual assets in the portfolio. When a new stock is added to the portfolio, the portfolio standard deviation typically increases. There is no limit to the amount of risk that can be eliminated by adding more assets to a portfolio. Mail - Ramirez, Jo... D Question 10 2 pts When graphing expected return versus beta-risk, an asset's return plots below the SML. It must be the case that: The asset return exceeds the market return. The asset is undervalued. The asset's reward to risk ratio is too low, The asset return is greater than expected. O The asset beta is too low