Question: The TWO financial management calculations which we identified in class as perhaps the two most fundamentally important concepts in modem financial decision making are: and

 The TWO financial management calculations which we identified in class as

The TWO financial management calculations which we identified in class as perhaps the two most fundamentally important concepts in modem financial decision making are: and (The answer IS NOT Time Value of Money (TVM) and the Risk-Return Trade-off) (TRUE or FALSE) The Dividend Growth Model (DGM) is generally used to estimate stock value and required rates of return for companies which pay dividends. (TRUE or FALSE) One of the common criticisms of the Profitability index capital budgeting methodology is that wrong reinvestment rate assumptions may lead to incorrect accept/reject decisions. (TRUE or FALSE) The Slope of Security Market Line (SML) is Market Risk Premium. (TRUE or FALSE) The Beta of an UNDIVERSIFIED PORTFOLIO is the weighted average of the Betas of components of the portfolio

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