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The Betas of the Actual Returns of Projects Equal The

Question 7

Multiple Choice

The betas of the actual returns of projects equal the:


A) project's profitability index times the appropriate beta needed to compute the true present value of the project.
B) project's payback period times the appropriate beta needed to compute the true present value of the project.
C) project's IRR times the appropriate beta needed to compute the true present value of the project.
D) project's NPV times the appropriate beta needed to compute the true present value of the project divided by the initial cash outflow.

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