Which of the Following Statements Is FALSE

question 15

Multiple Choice

Which of the following statements is FALSE?

• A)The Capital Asset Pricing Model is the most important method for estimating the cost of capital that is used in practice.
• B)Because the risk that determines expected returns is unsystematic risk,which is measured by beta,the cost of capital for an investment is the expected return available on securities with the same beta.
• C)A common assumption is that the project has the same risk as the firm.
• D)To determine a project's cost of capital we need to estimate its beta.

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Definitions:

Saturated Fats

Fats that contain no double bonds between carbon molecules because they are saturated with hydrogen molecules, commonly found in animal fats and some plant oils.

Mono-unsaturated Fats

A type of healthy fat found in various foods and oils, known for its heart-healthy benefits.

Polysaccharide

Complex carbohydrates made up of long chains of monosaccharide units bound together, serving various functions in living organisms, including energy storage and structural roles.

Glycogen

A multibranched polysaccharide of glucose that serves as a form of energy storage in animals and fungi.