Proponents of capm have concluded that all of the following


1. Proponents of CAPM have concluded that all of the following are correct EXCEPT one:

A) CAPM can be used for multiple-period plans

B) CAPM can be used for the mean rate of return for any investments using its beta value

C) CAPM is capable of eliminating unsystematic risk

D) CAPM determines the equilibrium

2. You are the beneficiary of a life insurance policy. The insurance company offers two options for receiving the proceeds: a lump sum of $50,000 today or payments of $550 a month for ten years. If you can earn 6 percent, compounded monthly, which option should you take and why?

a. You should accept the lump sum because the payments are only worth $49,540.40 today.

b. You should accept the payments because they are worth $51,523.74 today.

c. You should accept the payments because they are worth $53,737.08 today.

d. You should accept the $50,000 because the payments are only worth $49,757.69 today.

e. You should accept the $50,000 because the payments are only worth $48,808.17 today.

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Financial Management: Proponents of capm have concluded that all of the following
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