The lack of correlation between an investment's return and the firm's other investments suggests
A) the investment has little risk
B) portfolio effects may exist
C) the investment's beta coefficient is low
D) the investment's net present value is negative
Correct Answer:
Verified
Q45: NPV may be preferred to IRR because
A)
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Q47: Small standard deviations for cash inflows
A) reduces
Q48: If the internal rate of return of
Q49: A firm should make an investment if
Q51: An increase in the cost of capital
Q52: If an investment's net present value is
Q53: The internal rate of return and net
Q54: Risk may be incorporated into capital budgeting
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