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Which of the following statement is correct? O A very risky project will have a low beta coefficient, whereas low risk projects will have a
Which of the following statement is correct? O A very risky project will have a low beta coefficient, whereas low risk projects will have a higher beta. O Security Market Line and CAPM shows the functional relationship between a particular outcome and the likelihood of that outcome occurring (between 0% and 100%). All the answers are incorrect. O The closer the correlation coefficient is to +1.0, the more the two variables will tend to move in the opposite direction with each other at the same time. 4 The standard deviation is a numerical indicator of how widely dispersed the possible values are around a mean. Question 30 1 pts Which of the following statement is correct? When we calculate the present value of a future promised or expected cash payment, we compound it because the same amount of money is worth more if it is to be received later rather than now. O Money expected or promised in the future is worth more than the same amount of money in hand today. All the answers are incorrect. O Future value and present value are mirror images of each other. An annuity that goes on forever is called a growing annuity or an ordinary annuity
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