Beta of individual stocks in market portfolio

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Reference no: EM131908133

1. The average beta of individual stocks in the market portfolio:

A. is one.

B. is zero.

C. is 1/2 (midway between one and zero).

D. cannot be calculated without knowing the stocks in the portfolio.

2. The company cost of capital:

A. measures what investors want from the company.

B. depends on current profits and cash flows.

C. is measured using security book values.

D. depends on historical profits and cash flows.

Reference no: EM131908133

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