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The market risk premium equals expected market return plus the risk-free rate.

Firm-specific risk is also called idiosyncratic risk. 

Common risk affects all securities in the market. 

Beta is measured relative to a market index such as the S&P 500.

The cost of capital is not relevant for capital budgeting decisions. 

All projects in a firm have the same risk.

Excess return equals the investment return minus the risk-free rate. 

[U1Q] Taj analyzes time clock reports to determine the frequency and duration of late arrivals to work for employees at a manufacturing plant. Reports are analyzed prior to putting in place an intervention to increase on-time arrivals. Which of the following is the best example of the form of performance analysis used in this scenario?

[U1Q] An external consultant is brought into a large manufacturing company to enhance their unit output. The consultant implements a system where all new employees receive written and verbal instructions on how to perform a task, observe a manager demonstrate it, and then practice until they demonstrate competence. Which area of focus in OBM is this scenario an example of?

[U1Q] Assessment results have shown that an employee is failing to complete tasks on time due to outdated computer software. Traci provides the employee with updated software and observes differences in completion times. Which area of focus in OBM is this scenario an example of?