3. Question 3 Consider ABC, a large tech company, and XYZ, a small umbrella manufacturing company. If these two companies had the same beta, then according to the CAPM… 1…
2. Question 2 Ultimately, investors diversify their portfolio in order to 1 point Reduce its risk Increase its return Increase its risk Reduce its return …
5. Question 5 A company that started the year 2019 with $100 million in capital, generated during 2019 a NOPAT of $10 million, and had a cost of capital of…
1. Question 1 Given a specific asset and a specific time period, it is always the case that the asset’s arithmetic mean return will be… 1 point Lower than…
4. Question 4 When the investment recommendation (invest or do not invest) that follows from the NPV approach and the IRR approach are in conflict, you should… 1 point …
7. Question 7 Which one of the statements below is true? 1 point Last year, Stars’ economic profit was negative. Last year, Stars destroyed value. Last year,…
4. Question 4 Last year, Stripes’ capital charge was … 1 point $195 million $220 million $160 million $135 million $250 million
3. Question 3 Last year, Stars’ capital charge was … 1 point $40 million $100 million $60 million $120 million $80 million
2. Question 2 Last year, Stripes’ return on capital was … 1 point 16% 8% 10% 12% 14%
6. Question 6 Last year, Stripes’ EVA was … 1 point –$45 million –$25 million $25 million $10 million –$5 million
