Quiz Ch 13 – Slope of the Security Market Line
Fundamentals of Corporate Finance
Brealey, Myers, and Marcus
10th Edition
What is the equivalent of the slope of the security market line?
What is the equivalent of the slope of the security market line?
What type of risk is typically assessed using the standard deviation?
What type of risk is exemplified by the sudden increase in stock prices for 22 different companies due to an unexpected post on social media?
Which of the following options is most directly influenced by the level of systematic risk?
What measures the relative amount of systematic risk in a specific risky asset compared to the average risky asset?
True or false: The WACC is commonly adjusted upwards for riskier projects and downwards for safer projects when used as a discount rate.
True or false: The projected return on their bonds closely aligns with their yield to maturity in n the case of financially sound companies.
True or false: The amount of taxes paid will be affected when the company’s capital structure is changed but it will not alter the WACC.
True or false: The company’s cost of capital represents investor expectations for returns from its assets and operations.
True or false: The company’s cost of capital is the minimum required return for any project.