What justification can there be for using the rate of return derived from capital (stock) market returns

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What justification can there be for using the rate of return derived from capital (stock) market returns as the discount rate to be applied in the appraisal of a real investment project within a business?

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Business Finance

ISBN: 9781292134406

11th Edition

Authors: Eddie McLaney

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Question Posted: Mar 05, 2024 06:38 AM

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What justification can there be for using the rate of return derived from capital (stock) market returns

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This is justified on two grounds The stock market is a free efficient and observable marke...View the full answer

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