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
Posted: Sat Feb 26, 2022 9:07 am
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?
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?