A stock has yielded returns of 6 percent 11 percent 14percent and -2 percent over the past 4 years respectively. Whatis the standard deviation of these […]
You are considering the following two mutually exclusiveprojects. The required return on each project is 14 percent. Whichproject should you accept and what is the best […]
The net present value:-decreases as the required rate of return increases.-is equal to the initial investment when the internal rate ofreturn is equal to the required […]
An investment has conventional cash flows and a profitabilityindex of 1.0. Given this which one of the following must betrue?-The internal rate of return exceeds the […]
Which one of the following statements is correct?-A longer payback period is preferred over a shorter paybackperiod.-The payback rule states that you should accept a project […]
Which one of the following statements is correct?-The net present value is a measure of profits expressed in todaysdollars.-The net present value is positive when the […]
Which one of the following can be defined as a benefit-costratio?-Net present value-Internal rate of return-Profitability index-Accounting rate of return-Modified internal rate of return