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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