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Which one of these statements is correct concerning the CAPM? A) The CAPM is the only available method for determining an appropriate discount rate for

Which one of these statements is correct concerning the CAPM?

A) The CAPM is the only available method for determining an appropriate discount rate for a proposed project.

B) The market rate of return is most commonly based on the forecasted return on the market for the next 5-year period.

C) CAPM is used quite frequently by firms in their capital budgeting process.

D) The expected return on the 30-year U.S. Treasury bond is the most commonly used as the risk-free rate of return.

E) An increase in the risk-free rate combined with a beta greater than 1.0 increases the discount rate computed using the CAPM.

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