When Calculating a Firm's Cost of Equity Using CAPM, It

question 78

Multiple Choice

When calculating a firm's cost of equity using CAPM, it is generally recommended that_________be used as the risk-free rate.

• A) Government of Canada long-term bonds
• B) the prime lending rate offered by banks
• C) Government of Canada T-bills
• D) long-term corporate bonds

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Definitions:

Conners 3

A psychological tool used for assessing children and teens for ADHD and its associated features.

Diagnosis of ADHD

The process of identifying Attention Deficit Hyperactivity Disorder through assessing symptoms, behavior, and possibly neurological testing.

Base Rate

In statistics and diagnostic testing, the prevalence or general rate of occurrence of a condition, characteristic, or event within a given population.

Millon

A psychological assessment tool named after Theodore Millon, used for personality disorders and psychopathology.