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Author Question: The appropriate measure for risk according to the capital asset pricing model is A) the standard ... (Read 85 times)

ishan

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on: Jul 11, 2018
The appropriate measure for risk according to the capital asset pricing model is
 
  A) the standard deviation of a firm's stock returns.
  B) the standard deviation of a firm's cash flows.
  C) alpha.
  D) beta.

Question 2

Given a discount rate of 0, which of the following has the greatest present value? ONE, a series of 10 equal annual end-of-the cash flows of 100 each, TWO, just like ONE except the first 5 cash flows are only 50 but the last 5 cash flows are 150
 
  , or THREE, just like ONE except the 10 100 cash flows are at the beginning of the period.
  A) ONE
  B) TWO
  C) THREE
  D) The choices all have equal present values.
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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kxciann

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Reply #1 on: Jul 11, 2018
Answer to Question 1

D

Answer to Question 2

D


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ishan

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Reply #2 on: Jul 11, 2018
Thank you


kxciann

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Reply #3 on: Jul 11, 2018
No problemo


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