Capital Asset Pricing Theory Suggests That ____ Risk of Projects

question 39

Multiple Choice

Capital asset pricing theory suggests that ____ risk of projects can be ignored and that ____ is relevant.

• A) unsystematic; unsystematic
• B) unsystematic; systematic
• C) systematic; unsystematic
• D) systematic; systematic

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life to date.

Contra-Asset

An account that decreases the balance of its associated asset account through a contra entry.

Supplies

Consumable items used in day-to-day operations of a business or office, such as stationery, paper, and cleaning products.

Expenses

Outflows or other uses of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.