# Using the CAPM to calculate the cost of capital

7. Using the CAPM to calculate the cost of capital for a risky project assumes that:

A. using the firm's beta is the same measure of risk as the project.

B. the firm is all-equity financed.

C. the financial risk is equal to business risk.

D. Both A and B.

E. Both A and C.

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Using the CAPM to calculate the cost of capital for a risky project assumes that:

A. using the firm's beta is the same ...

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