Problem of multiple internal rates of return can occur when

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Reference no: EM132040398

1. The problem of multiple internal rates of return (IRRs) can occur when:

A. the cash flows are steadily declining over the life of the project.

B. the cash flows are steadily increasing over the life of the project.

C. there is more than one sign change in the cash flows over the life of the project.

D. the project’s scale is particularly large.

E. the project’s scale is particularly small.

2. The beta of a security provides:

A. estimate of the slope of the Security Market Line.

B. estimate of the market risk premium.

C. estimate of the impact of fixed costs on profit.

D. estimate of the systematic risk of the security.

E. estimate of the slope of the Capital Market Line.

Reference no: EM132040398

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