Which statement about the use of the profile model is BEST?
A) The profile model requires careful calculation of the percentage risk for each possible project.
B) The scale used for the profile model can be any two numerical variables that a company deems important.
C) The efficient frontier in the profile model is where return is 100% (or greater) and risk is 0%.
D) For a given level of risk, a positive move on the return axes would indicate a superior project.
D
You might also like to view...
Redeau Company has been depreciating certain assets using the straight-line method. At the beginning of the current year, the company changed to the sum-of-the-years'-digits method to depreciate these assets. Which of the following statements regarding this change is true?
A) The change should be accounted for prospectively. B) The change should be accounted for with an adjustment of the accumulated depreciation and the retained earnings balances. C) The change should be accounted for by including the cumulative effect of the change in the current year's income statement. D) The accounting impact of the change is limited to the difference in current-year depreciation on the affected assets.
A change in the useful life of an asset is treated as a _____________
Fill in the blank(s) with correct word
Which of the following countries has the highest GDP?
A. Japan B. China C. the United Kingdom D. the United States E. Canada
Proceeds from the issuance of new debt and principal payments upon maturity of debt used to
finance a project should be included in the calculation of the project's after-tax cash flows. Indicate whether the statement is true or false