1)Which of the following assumptions regarding investor behavior are required by the CAPM?
I. Investors try to maximize their wealth
II. Investors consider only risk when making investments
III. Investors are risk averse
IV. Investors adopt a long-term perspective
I and III
I, II and III
I and IV
All of the above
2)Which items are necessary in calculating the net present value of a project?
I. Investment outlays
II. Discount rate
III. Incremental cash flow
IV. Time period for the project
I, II and IV
I, II and III
II, III and IV
All of the above