Please mark the following as either True or False (1 point each) ____ Payback period should be the primary decision criteria for capital budgeting projects. ____ When you have mutually exclusive projects the NPV rule is unreliable. ____ To be considered in the analysis for a capital budgeting project, the cash flow must be incremental. ____ Sensitivity analysis is looking at the effect on the NPV of a project by varying one variable (at a time) while leaving all other variables at their base case levels ____ The risk premium for an asset is its expected return minus the risk-free rate. ____ Generally, asset classes with higher expected returns tend to have lower risk. ____ If markets are efficient, then investors can expect to earn a return (on average) that fairly compensates them for the risk they are taking. ____ Systematic risk can be diversified away. ____ The relevant risk for determining an assets expected return is that assets systematic risk. ____ Beta measures a stocks total risk.