Which of the Following Is Not a Technique Applied to Capital

question 107

Multiple Choice

Which of the following is not a technique applied to capital expenditure decisions?

• A) Payback
• B) Cash budgeting
• C) Discounted cash flow analysis
• D) Accounting rate of return

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Definitions:

Portfolio Beta

A measurement of the volatility, or systematic risk, of a portfolio of assets compared to the market as a whole.

Larger Number

A numerical quantity that is greater in value when compared to another number.

Longer Time Period

A timeframe that extends beyond the short term, often implying a broader scope for assessment or investment.

Portfolio Beta

A measure of a portfolio's volatility relative to the market as a whole; it indicates the sensitivity of the portfolio's returns to market returns.