QUESTION 14 The CAPM shows that the expected return for a particular asset depends on the pure time value of money, the asset's beta coefficient, and the: market risk premium asset's expected standard deviation asset's historical standard deviation asset's unsystematic risk QUESTION 15 A project's cash flows are conventional. The required return is 17%. The project's NPV > 0. Therefore the project's: IRR 17% QUESTION 16 If the sign if the cash flows changes multiple times, there may be no unique IRR for the project. True False QUESTION 17 Net present value may be interpreted as the amount by which the market value of the firm will change if the project is accepted. True False QUESTION 18 In most capital budgeting decisions the emphasis should be on reported earnings rather than cash flows. True False QUESTION 19 A stock has had the following returns: 5%, -2%, 8%, 3%. What is the stock's arithmetic average return? -3% 3.5% 7% 10% QUESTION 20 A stock has had the following returns: 5%, -2%, 8%, 3%. What is the stock's geometric average return? -2% 3.44% 7% 10%