54.A proposed investment must earn at least as much as the ______ if it is to be deemed acceptable. A. Company cost of capitalB. Risk-free rateC. Market risk premiumD. Project cost of capital 55.A project with a higher than average risk offers an expected return of 18%. Which statement is correct if the company's opportunity cost of capital is 12% and the project's opportunity cost of capital is 15%? 56.The project cost of capital is: 57.The minimum acceptable expected rate of return on a project of a specific risk is the: 58.If changing discount rates from the company cost of capital to the project cost of capital changes NPV from negative to positive, then the project should use the: A. Company cost of capital and be acceptedB. Company cost of capital and be rejectedC. Project cost of capital and be acceptedD. Project cost of capital and be rejected 59.Which of the following statements best explains the fact that cyclical firms tend to have high Betas? 60.What type of risk is properly reflected in a project's discount rate?
61.If last month a stock with Beta of 1.0 lost two percent while the TSX 300 had a one percent gain, then it appears that: 62.The slope of the regression line that exhibits the past relationship between a stock's return and the market's return is the: A. Security market lineB. Stock's BetaC. Market risk premiumD. Stock's unique risk 63.Which of the following is most likely correct for a diversified stock portfolio that exhibits a higher standard deviation than the market index?
You've reached the end of your free preview.
Want to read all 26 pages?