The returns of the financial assets in the portfolio

Assignment Help Financial Management

Reference no: EM131915108

1. The Capital Assets Pricing Model can be used to calculate?

a) Cost of debt

b) Cost of Preferred Equity

c) Cost of Common Equity

d) Cost of Cash

2. The diversification effect does not work in a portfolio when the returns of the financial assets in the portfolio

A. all have betas equal to zero

B. are perfectly negatively correlated

C. are perfectly positively correlated

D. Both A and C

Reference no: EM131915108

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