Which of the following statements is true? Group of answer choices Market risk premium is defined as the difference between the market rate of return and the return on risk-free Treasury bills. Diversification decreases the variability of both unique and market risk. A project should be accepted if its return plots below the security market line. Project cost of capital and company cost of capital are synonymous terms.
Which of the following statements is true? Group of answer choices Market risk premium is defined as the difference between the market rate of return and the return on risk-free Treasury bills. Diversification decreases the variability of both unique and market risk. A project should be accepted if its return plots below the security market line. Project cost of capital and company cost of capital are synonymous terms.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Which of the following statements is true? Group of answer choices Market risk premium is defined
as the difference between the market rate of return and the return on risk-free Treasury bills.
Diversification decreases the variability of both unique and market risk. A project should be accepted
if its return plots below the security market line. Project cost of capital and company cost of capital
are synonymous terms.
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