Based on the CAPM, the ____ the Beta of a Project

question 5

Multiple Choice

Based on the CAPM, the ____ the beta of a project, the ____ the required rate of return on that project.

• A)higher; higher
• B)lower; higher
• C)higher; lower
• D)B and C
• E)none of the above

---

Definitions:

Units Produced

The total number of complete units manufactured or finished in a given period.

Fixed Costs Per Unit

Fixed costs per unit decrease as production volume increases, reflecting the spread of costs that do not change with the level of output over a larger number of units.

Units Produced

The total quantity of goods manufactured by a company within a specific period.

Scatter Diagram

A graphical representation used to visualize the relationship between two quantitative variables, showing correlation patterns.