Use the information for the question below. If WiseGuy Inc. uses payback period rule to choose projects, which of the pr

[answerhappygod]

Use the information for the question below.
If WiseGuy Inc. uses payback period rule to choose projects,
which of the projects (Project A or Project B) will WiseGuy Inc.
prefer?
Project A and Project B have the same ranking.
Project A
Cannot calculate a payback period without a discount rate.
Project B
When we combine stocks in a portfolio, the amount of risk that
is eliminated depends on the degree to which the stocks are
correlated with one another.
True
False
Consider the following annual returns for Vanguard 500 Index
Fund Investor Shares (VFINX)
2005
2006
2007
2008
10%
-10%
15%
-15%
Calculate the geometric average annual return over this
period.
-2.82%
1.55%
0.26%
-0.82%