When We Compute the Cost of Equity Capital for a Project

question 21

Multiple Choice

When we compute the cost of equity capital for a project we assume that the ________ of the project is equivalent to the average risk of the firm's investments.

• A)diversifiable risk
• B)market risk
• C)non-systematic risk
• D)volatility
• E)standard deviation

---

Definitions:

ABO Blood Groups

A classification of human blood based on the presence or absence of antigens on the surface of red blood cells, which is significant for blood donation and transfusion compatibility.

Genus Homo

Refers to the category in biological classification that includes modern humans (Homo sapiens) and several extinct species closely related to humans.

Tropics

The region of the Earth centered on the equator and between the Tropic of Cancer in the north and the Tropic of Capricorn in the south, characterized by a warm climate year-round.

Adapted Through Culture

The process by which human groups adjust and change their cultural practices in response to environmental, social, or technological challenges.