Answer Happy

Which of the following statements is correct without limitations? Select one: A. Yield-to-maturity and debt-rating are two methods of calculating the debt cost of capital. B. For companies with publicly traded debt, the equity cost of capital should reflect the current debt market rate the company is paying. C. The CAPM may be used to estimate costs of equity but is of no use for assessing the debt cost of capital. D. All of the statements are false. The Capital Asset Pricing Model (CAPM) describes the relation between risk and expected return. Please provide the correct names for the line A and the points B and C. A Expected return С B. Volatility Select one: A. A: Efficient Frontier of all risky securities, B: Riskless Return, C: Market portfolio (efficient portfolio) B. A: Capital market line, B: Arbitrage point, C: Market portfolio (efficient portfolio) C. A: Market borrowing line, B: Market portfolio (efficient portfolio), C: No-return security D. A: Marginal lending line, B: Unsystematic risk security, C: Arbitrage portfolio