Modern portfolio theory developed by William F. Sharpe is the foundation of ________

A) currency market parity models
B) the balance sheet hedge
C) the capital asset pricing model
D) adjusted net present value model

Answer: C

Business

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Which of the following conditions is most likely to act as a deterrent for foreign firms willing to do business with former communist nations of East Europe and central Asia?

A. The high levels of economic development in these countries B. The signs of growing unrest and totalitarian tendencies seen in these countries C. A strong commitment to market-based economic systems seen in these countries D. The collapse of communism in these countries E. Low returns involved in doing business in these countries

Business

When calculating the WACC it is common to include the estimated cost of accounts payable if a firm does not take the discount for early payment

Indicate whether the statement is true or false

Business