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​Match the Term to Its Definition

question 37

Multiple Choice

​Match the term to its definition.
-​Prescribes behavior for professionals


Definitions:

Capital Asset Pricing Model

A model that describes the relationship between systematic risk and expected return for assets, particularly stocks.

Expansion Option

An opportunity in capital budgeting for a company to invest in additional projects or assets based on its initial project's success.

Decision Tree Analysis

A graphical representation of possible solutions to a decision based on different conditions or events, used in risk management and decision making.

Cost Of Capital

The necessary rate of return to consider a capital expenditure project, like the development of a new factory, as viable.

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