With reference to ß and capital budgeting

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Reference no: EM131451500

With reference to β and capital budgeting, which of the following statements is false? Choose one answer.

a. The systematic risk of the firm is the weighted average of the systematic risk of individual assets.

b. The risk adjusted discount rate for any project is the sum of the risk-free rate and the project β times the market risk premium

c. In general, the risk-adjusted discount rate approach is considered preferable to the weighted cost of capital when the projects have significantly different risk characteristics.

d. None of the selections are false.

Reference no: EM131451500

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