Question: 18. You observe the following scatterplot of Ford's weekly returns against the S&P 500. Which of the following statements is true about Ford's beta? Ford
18. You observe the following scatterplot of Ford's weekly returns against the S&P 500. Which of the following statements is true about Ford's beta? Ford vs. S&P 0.15 - 0.05 Ford vs. S& Poole -0.1- 105.05 - 0.05 - 0.1 AW art naboba A) Ford's beta appears to be positive. B) Ford's beta appears to be negative. Do C) Ford's beta appears to be zero- there is no apparent relation between its return and the S&P return. D) It is impossible to determine Ford's beta d e towo be A10mg od b orobil 19. Which of the following would be the best method of incorporating project risk into the capital budgeting decision? A) Picking a risk factor equal to the average discount rate B) Ignoring it C) Adjusting the discount rate downward for increasing risk D) Adjusting the discount rate upward for increasing risk E) Using the company's WACC as the discount rate since risk does not matter
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