A Project Costs $3 Million,and Is Expected to Generate $1

question 52

Multiple Choice

A project costs $3 million,and is expected to generate $1 million in cash flows for the next 4.If the opportunity cost of capital is 15%,the project's return would plot:

• A) above the security market line.
• B) below the security market line.
• C) on the security market line.
• D) on the security market line, with a beta of 1.0.

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Definitions:

Negative Reinforcement

A reinforcement contingency through which behaviors are followed by the removal of previously experienced negative consequences, resulting in the likelihood that the behavior will occur again in the same or similar situations.

Positive Reinforcement

A reinforcement contingency through which behaviors followed by positive consequences, are more likely to occur again in the same or similar situations.

Negative Punishment

A behavioral psychology concept where reducing or taking away a desirable stimulus decreases the likelihood of a behavior recurring.

Positive Reinforcement

A motivational technique involving the addition of a reward following a desired behavior, aiming to increase the likelihood of the behavior being repeated.