Which of the Following Methods Involves Calculating an Average Beta

question 3

Multiple Choice

Which of the following methods involves calculating an average beta for comparable firms and using that beta to determine a project's beta?

• A)Risk premium method
• B)Pure play method
• C)Accounting beta method
• D)CAPM method
• E)Discounted cash flow model

---

Definitions:

Enterprise-Wide Systems

Systems that link an organization’s entire software application environment into a single enterprise solution.

Software Application

A program or suite of programs designed to perform specific tasks for users, ranging from productivity tools to games and educational software.

Single Enterprise Solution

A comprehensive software system designed to meet all of an organization's needs, integrating various functions into one platform.

HRIS

Human Resources Information System is a software or online solution used for data entry, data tracking, and data information needs of the HR, payroll, management, and accounting functions within a business.