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NEW QUESTION: 1
A firm is considering the purchase of an asset whose risk is greater than the current risk of the firm, based on any method for assessing risk. In evaluating this asset, the decision-maker should
A. Increase the NPV of the asset to reflect the greater risk.
B. Ignore the risk differential if the asset to be accepted would comprise only a small fraction of the total assets of the firm.
C. Increase the cost of capital used to evaluate the project to reflect the higher risk of the project.
D. Reject the asset, since its acceptance would increase the risk of the firm.
E. Increase the IRR of the asset to reflect the greater risk.
Answer: C
Explanation:
Explanation/Reference:
Explanation:
An increase in a project's beta will cause its stock price to decrease unless the increased beta were offset by a higher expected rate of return. Therefore, high-risk investments require higher rates of return, whereas low-risk investments require lower rates of return.
NEW QUESTION: 2
An administrator is implementing a private cloud that will be used as a test environment. To limit the number of guests per subnet to a maximum of 14, the administrator implemented a /20 network. Which of the following should the administrator use to assign the networks?
A. VLAN
B. Gateway
C. Subnet
D. DHCP
Answer: D
NEW QUESTION: 3
A. Option D
B. Option C
C. Option E
D. Option A
E. Option B
Answer: B
NEW QUESTION: 4
A customer has complained that paint is peeling off a product recently purchased from a supplier. A team is formed in the supplier plant to solve the problem and follow these steps:
Which of the following methods best describes the problem-solving approach used by the team?
A. Five why's
B. Brainstorming
C. Fishbone analysis
D. Pareto analysis
Answer: C
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