Portfolio theory makes it possible to incorporate Risk into capital budgeting through risk adjusted returns. However, po

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Portfolio theory makes it possible to incorporate Risk into capital budgeting through risk adjusted returns. However, po

Post by answerhappygod »

Portfolio theory makes it possible to incorporate Risk into
capital budgeting through risk adjusted returns. However, portfolio
theory omits an important element of risk that is relevant in
capital budgeting. That missing element is:
unsystematic risk.
liquidity risk.
market risk.
systematic risk.
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Post Reply