Which of the Following Methods Involves Calculating an Average of the Beta

question 51

Multiple Choice

Which of the following methods involves calculating an average of the beta coefficients of numerous firms that are in the same (or a quite similar) line of business and then using that average beta coefficient to determine the appropriate required rate of return for a new capital budgeting project?

• A)Sensitivity analysis method
• B)Pure play method
• C)Accounting beta method
• D)Risk-adjusted method
• E)Net present value (NPV) method

---

Definitions:

Analysis

The process of examining components or structure of something to understand it better or to draw conclusions.

Off-The-Job Training

Training conducted away from the normal work environment, usually in a classroom or online, focusing on theoretical knowledge and skills.

Organizational Performance

A measure of how well a company or organization is meeting its goals and objectives, often evaluated through financial performance, employee satisfaction, and customer satisfaction.

Training Outcomes

Training Outcomes are the results or achievements of a training program, including knowledge gained, skills developed, and changes in behavior or performance.