The ability to expand a project after learning more information is similar to exercising a call option. True False QUESTION 5 According to the CAPM, companies that have higher discount rates should also have lower betas. True False QUESTION 6 JACK LLC and KEWEI Holdings are nearly identical in every way, expect JACK LLC is financed with 75% debt and KEWEI Holdings is financed with 75% equity. We would expect that JACK LLC will have a higher equity beta than KEWEI Holdings. True False QUESTION 7 In a market with no frictions, repurchasing shares will lower a firm's stock price. True False