The risk-free rate is 8% and the expected return on the market portfolio is 16%. A firm

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The risk-free rate is 8% and the expected return on the market portfolio is 16%. A firm considers a project that is expected to have a beta of 1.3.

a. What is the required rate of return on the project?

b. If the expected IRR of the project is 19%, should it be accepted?

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ISE Investments

ISBN: 9781260571158

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Mar 13, 2024 05:00 AM

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The risk-free rate is 8% and the expected return on the market portfolio is 16%. A firm

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