TRUE OR FALSE (If false briefly explain)
-A firm's cost of capital can be used in valuation of every new project they encounter, regardless of its risk.
-The security market line plots the historic relationship between returns on an individual stock and the market portfolio.
-Changing the discount rate is equivalent to adjusting expected cash flows as a method of accounting for risk
-The greater the DOL, the greater the protection against operating losses during economic downturns
-If a project permits a reduction in the level of working capital, this reduction is assumed to increase cash flows