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12.1 The Equity Cost of Capital Use the following information to answer the question(s) below. Assume that the risk-free rate of interest is 3% and
12.1 The Equity Cost of Capital Use the following information to answer the question(s) below.
| Assume that the risk-free rate of interest is 3% and you estimate the market's expected return to be 9%. | |||
| 1) Which firm has the most total risk? | |||
| 2) Which firm has the most market risk? | |||
| Beta | Volatility | |
| "Eenie" | 0.45 | 35% |
| "Meenie" | 0.75 | 18% |
| "Miney" | 1.05 | 20% |
| "Moe" | 1.2 | 25% |
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The Ultimate Beginners Guide To Understanding NFTs
Authors: LM Anderson
1st Edition
1739781732, 978-1739781736
