Which one of these statements is correct concerning the CAPM? Group of answer choices The CAPM is the only available method for determining an appropriate discount rate for a proposed project. The market rate of return is most commonly based on the forecasted return on the market for the next 5-year period. CAPM is used quite frequently by firms in their capital budgeting process. The expected return on the 30-year U. S. Treasury bond is the most commonly used as the risk-free rate of return. An increase in the risk-free rate combined with a beta greater than 1.0 increases the discount rate computed using the CAPM.
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Which one of these statements is correct concerning the CAPM? Group of answer choices The CAPM is th...
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