If a Project Could Have a Bad Outcome

question 34

Multiple Choice

If a project could have a bad outcome:

• A) the discount rate should be increased.
• B) expected cash flows should be adjusted downward to reflect this possibility.
• C) the beta should be increased.
• D) the market risk premium should be revised downward.

---

Definitions:

Mass Literacy

The condition or quality of being able to read and write on a level that is sufficient for most practical and everyday purposes, widely spread across a large population.

Catholic Church

The largest Christian church, led by the Pope, emphasizing sacramental worship and the doctrine of apostolic succession.

Latin Bible

The collection of biblical texts originally written in Hebrew, Aramaic, and Greek, translated into Latin, known as the Vulgate, which was the standard Bible of Western Christianity for many centuries.

Cultural Capital

denotes the non-financial social assets that promote social mobility beyond economic means, such as education, intellect, style of speech, or dress.