Betas are exact measurements

Assignment Help Financial Management

Reference no: EM13947860

Which one of these statements is correct?

A. Betas are exact measurements.

B. If a stock has a very low beta, it is most apt to maintain that beta in the future.

C. The expected future risk premium is easy to accurately determine.

D. CAPM is widely used as a means of valuing stock.

A proposed investment must earn at least as much as the ______ if it is to be deemed acceptable.

A. company cost of capital

B. risk-free rate

C. market risk premium

D. project cost of capital

Reference no: EM13947860

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