Question: Select a true statement. A. Under capital asset pricing model (CAPM) all securities should be plotted along the Security Market Line (SML), otherwise arbitrage opportunities
Select a true statement.
| A. | Under capital asset pricing model (CAPM) all securities should be plotted along the Security Market Line (SML), otherwise arbitrage opportunities exist. | |
| B. | When evaluating a projects NPV, we should always use firms WACC as a discount rate. | |
| C. | DuPont analysis decomposes ROE into net profit margin, asset turnover and PE ratio | |
| D. | Days payable outstanding (DPO) captures how long a firm takes to collect its credit sales. |
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