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10.9 Adjusting the cost of capital for risk. See attached question. ' is considering creating consulting and d-istributiOn fa menuy 1.5. The risk-free rate is

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10.9 Adjusting the cost of capital for risk. See attached question.

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' is considering creating consulting and d-istributiOn fa menuy 1.5. The risk-free rate is 3.1%, and the - that the r'm's real estate division will have a cost of capital of: ' division is expected to have a beta of 2.2, because it will be n'n's real estate division. 0 \"34% O 18.09% 0 17.59% hf? am will have less risk than the rm's real estate division, I be 0.6

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