Which of the Following Statements Is True

question 48

Multiple Choice

Which of the following statements is true?

• A)The CAPM will provide a reasonably good cost of capital estimate in many corporate scenarios.
• B)Most corporate CFOs used alternative models to the CAPM when estimating their projects' costs of capital.
• C)The CAPM provides the most accurate results when it is used to determine which financial investments are best to undertake at any given point in time.
• D)The CAPM will provide a cost of capital that is accurate to the hundredth of a percent.