Offered the highest average annual returns

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1. According to the text, the NPV rule states that An investment should be accepted if the net present value is positive and rejected if it is negative. what does an NPV of zero mean? if you were a decision-maker faced with a project with a zero NPV (or very close to zero) what would you do?

2. Suppose you have a market value of equity equal to R20 million and a market value of debt=R120 million. what are the capital structure weights?

3. What securities have offered the highest average annual returns over the last several decades? can we conclude that return and risk are related in real life?

Reference no: EM131814084

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