One Method of Accounting for Systematic Risk for a Project

question 80

Multiple Choice

One method of accounting for systematic risk for a project involves identifying a publicly traded firm that is engaged in the same business as that project and using its required rate of return to evaluate the project.This method is referred to as

• A) the accounting beta method.
• B) scenario analysis.
• C) the pure play method.
• D) sensitivity analysis.

---

Definitions:

Cite

To give credit to the original sources of information, ideas, or words in academic or professional writing to avoid plagiarism.

Document Sources

Documenting sources involves providing detailed information about the origin of information or materials used in a work, typically through citations or bibliographies, to acknowledge original authors and avoid plagiarism.

Plagiarism

The act of using someone else's work or ideas as your own without giving proper attribution.

Credibility

the quality of being trusted, believable, or reliable.