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With respect to the CAPM, which one of the following statements is correct? A ) The CAPM is the only available method for determining an
With respect to the CAPM, which one of the following statements is correct? 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 year period. C CAPM is used quite frequently by firms in their capital budgeting processes. D The expected return on the year US Treasury bond is the most commonly used as the riskfree rate of return. E An increase in the riskfree rate combined with a beta greater than increases the discount rate computed using the CAPM.
With respect to the CAPM, which one of the following statements is correct?
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 year period.
C CAPM is used quite frequently by firms in their capital budgeting processes.
D The expected return on the year US Treasury bond is the most commonly used as the riskfree rate of return.
E An increase in the riskfree rate combined with a beta greater than increases the discount rate computed using the CAPM.
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