The Better Bilt Co. is fairly cautious when considering new projects and therefore analyzes each project using the most optimistic, the most realistic, and the most pessimistic value for each variable. The company is conducting: O a. Scenario analysis. O b. Break-even analysis. O c. Sensitivity analysis. O d. Competitive analysis. e. Forecasting research. A potential problem associated with the use of the dividend growth model to compute the cost of equity is that Everything needed for the model is directly observable except the current dividend. O True False The expected return of the portfolio considers the probability of various states of the economy. O True False What relationship are the volatilities of stock A and B exhibiting? Returns AMOK . Time O a. Systematic correlation. O b. No correlation O c. Negative correlation O d. Unsystematic correlation. e. Positive correlation. The weights that are commonly used when computing the expected return of a portfolio given various economic scenarios are based on the amount invested in each security held in the portfolio. O True False The EAC method for evaluating projects applies when the projects have different economic lives. True O False