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NEW QUESTION: 1
If the firm is being operated so as to maximize shareholder wealth, and if our basic assumptions concerning the relationship between risk and return are true, then which of the following should be true?
A. If the beta of the asset is larger than the firm's beta, then the required return on the asset is less than the required return on the firm.
B. If the beta of the asset is greater than the corporate beta prior to the addition of that asset, then the corporate beta after the purchase of the asset will be smaller than the original corporate beta.
C. None of these answers are true.
D. If the beta of an asset is larger than the corporate beta prior to the addition of that asset, then the required return on the firm will be greater after the purchase of that asset than prior to its purchase.
E. If the beta of the asset is smaller than the firm's beta, then the required return on the asset is greater than the required return on the firm.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
An increase in a project's beta will cause its stock price to decrease unless the increased beta were offset by a higher expected rate of return. Therefore, high-risk investments require higher rates of return, whereas low-risk investments require lower rates of return.

NEW QUESTION: 2
Which name describes an IPV6 host-enable tunneling technique that uses IPV4 UDP,does not require dedicated gateway tunnels,and can pass through existing IPV4 NAT gateways?
A. dynamic
B. dual stack
C. Manual 6to4
D. Teredo
Answer: D

NEW QUESTION: 3
Advertisement: The world's best coffee beans come from Colombia. The more Colombian beans in a blend of coffee, the better the blend, and no company purchases more Colombian beans than Kreemo Coffee, Inc. So it only stands to reason that if you buy a can of Kreemo's coffee, you're buying the best blended coffee available today.
The reasoning of the argument in the advertisement is flawed because it overlooks the possibility that
A. not all of Kreemo's competitors use Colombian coffee beans in the blends of coffee they sell
B. Kreemo's coffee is the most expensive blended coffee available today
C. the best unblended coffee is better than the best blended coffee
D. Kreemo sells more coffee than does any other company
E. the equipment used by Kreemo to blend and package its coffee is no different from that used by most other coffee producers
Answer: D
Explanation:
Explanation/Reference:
Explanation: