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    Corporate Finance Study Set 5
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    Exam 11: Optimal Portfolio Choice and the Capital Asset Pricing Model
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    The Cost of Capital of Investment I Is Equal to the Expected
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The Cost of Capital of Investment I Is Equal to the Expected

Question 10

Question 10

Multiple Choice

The cost of capital of investment i is equal to the expected return of the best available portfolio in the market with the same sensitivity to


A) systematic risk.
B) firm-specific risk.
C) unique risk.
D) independent risk.

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