Which One of These Statements Is Correct Concerning the CAPM

question 54

Multiple Choice

Which one of these statements is correct concerning the CAPM?

• A)The CAPM is the only available method for determining an appropriate discount rate for a proposed project.
• B)The market rate of return is most commonly based on the forecasted return on the market for the next 5-year period.
• C)CAPM is used quite frequently by firms in their capital budgeting process.
• D)The expected return on the 30-year U.S.Treasury bond is the most commonly used as the risk-free rate of return.
• E)An increase in the risk-free rate combined with a beta greater than 1.0 increases the discount rate computed using the CAPM.

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Definitions:

Sales Lead Club

A group or organization focused on generating and sharing potential customer contacts for the purpose of increasing sales.

Insurance Salesperson

A professional who specializes in selling insurance policies to clients, advising them on risk management and protection strategies.

Parallel Referral

A referral process where individuals in similar positions or industries exchange leads or recommendations simultaneously.

Sales Lead Club

A group or network designed to share leads or information about potential customers among its members.