Type of risk is properly reflected in project discount rate

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Reference no: EM132054516

1. Which of the following statement about floating rate preferred stock is true

a- more than one of the optio s ture b- the dividend rate changes quarterly c- the price of the stock fluctuates with the market d- the dividend rates is tied to the inflation rate.

2. What type of risk is properly reflected in a project's discount rate?

A) Market risk

B) Total risk

C) Specific risk

D) Diversifiable risk

3. What is the standard deviation of the market portfolio if the standard deviation of a well-diversified portfolio with a beta of 1.25 equals 20%?

A) 16.00%

B) 32.50%

C) 25.00%

D) 18.75%

Reference no: EM132054516

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