Claire Stopped Taking Her Medication a Few Weeks Ago and Has

question 230

Multiple Choice

Claire stopped taking her medication a few weeks ago and has recently begun to experience some very odd symptoms. If someone asks her a question, her response makes no sense, as her sentences seem to just be strings of loosely connected ideas. She cannot concentrate on anything, and her thinking seems completely illogical and disorganized. She veers from one unrelated topic or activity to another for no apparent reason. Taken together, Claire's schizophrenic symptoms are called:

• A)sensory distortions.
• B)disorganized thinking.
• C)delusions of reference.
• D)symptoms of avolition.

Understand the concept of risk-adjusted discount rates for evaluating projects with different risk levels.

Explain the role of the Capital Asset Pricing Model (CAPM) in estimating the cost of equity.

Understand how the book value of capital is considered in calculating the Weighted Average Cost of Capital (WACC).

Identify and describe various approaches used in estimating the cost of equity.