Which of the following is a capital component for the


1. Which of the following is a capital component for the purpose of calculating the weighted average cost of capital in capital budgeting?

2. The component costs of capital are market-determined variables in as much as they are based on investors' required returns.

3. In a given portfolio, replacing an existing investment with a lower beta investment results in _____.

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Financial Management: Which of the following is a capital component for the
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