Which Statement Is False with Respect to the Decision Rule

question 33

Multiple Choice

Which statement is false with respect to the decision rule: accept a project if and only if [Return at Time 2 / (1 + i) - Δ] > 0?

• A)The decision rule is completely consistent with Fisher's separation theorem.
• B)The decision rule is the same as the net present value rule.
• C)A company that always applies the decision rule to its investment decisions will be able to locate the optimal investment/dividend policy and will maximise the wealth of its shareholders.
• D)None of the given options.

---

Definitions:

Risk Transference

The strategy of shifting potential risk from one party to another, often through insurance or contracts.

FireEye

A cybersecurity company known for providing various products and services aimed at stopping advanced cyber threats.

Security Software

Programs designed to protect computer systems and information from harm, theft, and unauthorized access.

Spam

Unwanted or unsolicited digital messages sent in bulk, often containing advertisements or scams, typically via email.