If the returns for two assets have a correlation coefficient of one, then there are no benefits of diversification by combining these assets in a two-asset portfolio.

The basis on which capital budgeting plans are made is a firm’s three- to five-year strategic plan.

Which of the following is the best measure of the systematic risk in a portfolio?

Capital rationing implies that

The market risk-premium is equal to expected return on the market portfolio.

An important objective of cash management is to lengthen the collection float and reduce the disbursement float.

If the covariance between the returns of two assets is equal to zero, then the correlation coefficient must also be zero.

The IRR and NPV decisions are consistent with each other when a project’s cash flows follow a conventional pattern.

If you were to completely diversify your portfolio by purchasing a portion of every asset in the investment universe, then the expected return of your portfolio is equal to the risk-free rate.

The capital appreciation component of a stock’s return considers the increase in price of a stock divided by the beginning of period price of the stock.