Which the formula for the capital asset pricing model is

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Question 1: One assumption underlying the use of the cost of capital to analyze capital projects is that:

a.Different risk projects are required to diversify the firm
b.Capital structure will vary with the type of financing
c.Current costs will remain the same
d.The analyzed projects are of comparable risk to existing projects

Question 2: Current ratio is 2:5. Current liability is sh. 30,000. The net working capital is

a.B) Sh. -45,000
b.D) Sh. 45,000
c.C) Sh. -18,000
d.A) Sh. 18,000

Question 3: The formula for the Capital Asset Pricing Model (CAPM) is:

a.Kj = Rf + β (Rf - Rm)
b.K = R + β (R - R)
c.K = R + β (R - M)
d.Kj = Rf + β (Rm - Rf)

Reference no: EM132919827

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