Makes the net present value of an investment

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Reference no: EM132018080

1. The discount rate that makes the net present value of an investment exactly equal to zero is called the:

external rate of return (ERR).

internal rate of return (IRR).

average accounting return.

profitability index.

2. The CAPM shows that the expected return for a particular asset depends on the pure time value of money, the asset’s beta coefficient, and the:

market risk premium

asset’s expected standard deviation

asset’s historical standard deviation

asset’s unsystematic risk

Reference no: EM132018080

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