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  • Which one of the following is considered an example of systematic risk? #361
  • Beta is a measure of security responsiveness to... #362
  • The risk-free security has a beta equal to …, while the market portfolio’s beta is equal to… #363
  • The revenue recognition principle dictates that revenue should be recognized in the accounting records: #364
  • According to the Capital Asset Pricing Model, a security’s expected (required return) is equal to the risk free rate plus a premium #365
  • A firm’s overall cost of capital: #366
  • A single, overall cost of capital is often used to evaluate projects because: #367
  • Which of the following is not a recognized approach for determining the cost of equity? #368
  • Company Q is all equity financed. For each £1 of earnings, it consistently pays 30p in dividends and retains 70p for reinvestment. It expects to earn a rate of return of 14% on capital employed. According to the Gordon Growth Model, what would the rate of earnings growth be in the future? Ignore tax. #369
  • The dividend growth model: #370
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