An increase in the Treasury Bill rate ________. A) has no ...

[kaid0807]

An increase in the Treasury Bill rate ________.
 
  A) has no effect on the required rate of return of a common stock
  B) increases the required rate of return of a common stock
  C) doubles the required rate of return of a common stock
  D) increases the beta of a common stock

Question 2

The ranking approach involves the ranking of capital expenditure projects on the basis of some predetermined measure such as the rate of return.
 
  Indicate whether the statement is true or false

[soda0602]

Answer to Question 1

B

Answer to Question 2

TRUE