A project under consideration has an internal rate of return of 12% and a beta of 0.6. The risk-free rate is 4% and the

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answerhappygod
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A project under consideration has an internal rate of return of 12% and a beta of 0.6. The risk-free rate is 4% and the

Post by answerhappygod »

A project under consideration has an internal rate of return of
12% and a beta of 0.6. The risk-free rate is 4% and the expected
rate of return on the market portfolio is 9%.
a. Should the project be accepted?
b. Should the project be accepted if its
beta is 1.8?
c. Does your answer change?
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