Exhibit 1-5 
-In Exhibit 1-5,curve B has a __________ slope that is __________ at every point.
Definitions:
Divisional Beta
A measurement of the risk associated with a particular division of a company, relative to the overall market.
Accounting Beta
A measure of the sensitivity of a company's operating income to changes in the economy or its sector, used for risk assessment in strategic planning.
Beta
The measure of market risk in portfolio theory. The degree to which a stock’s return moves with the market’s return.
Cost of Capital
The vital rate of earnings a company must generate from its investment plans to preserve its standing in the market and appeal for investments.
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