Based on CAPM, which of the following is a true statement regarding The stock\'s

Question

Based on CAPM, which of the following is a true statement regarding The stock's total risk is measured by its Beta. The firm specific risk of a stock can be reduced by diversification Expected return of a company's stock should be determined by its Standard deviation (sigma) measures stock's systematic risk. Out of the following methods of evaluating projects, which one of t consideration the time value of money? Payback period Internal rate of return Profitability index Net present value The internal rate of return is the: rate of return needed for a project to payback within the rate computed by discounting the cash inflows and dividing rate of return that equals to firm's weighted average cost of discount rate that causes the net present value of a project to As the CFO of General Motor, you know your company has an over Which one of the following projects would you accept if you make you internal rate of return (IRR) and profitability index (PI) information as Project A with PI 98% Project B with IRR 10% Project C with IRR 9% Project D with PI 10% Which one of the following methods of raising capital is associated burden) to the firm? Issuing new common stocks Issuing new preferred stocks Issuing new corporate bonds Keeping more retained earnings in the firm An analyst estimates that the Bank of America (BOA) stock will have depending on the state of the economy. What is the expected return

Explanation / Answer

Answer for the 2nd question is payback period . Remaing such are Internal rate of return ,profitability index and Net present value uses time value of money.

Remaing questions are not visible to solve.

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