Question
A project has a market beta of 1.4. The risk-free rate is 5%, and the equity premium is 7.6%. Your firm should undertake this project
A project has a market beta of 1.4. The risk-free rate is 5%, and the equity premium is 7.6%. Your firm should undertake this project only if it returns
(A) ≥ 3.64%
(B) ≥ 8.64%
(C) ≥ 10.64%
(D) ≥ 15.64%
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Get StartedRecommended Textbook for
Chemistry
Authors: Raymond Chang
10th edition
77274318, 978-0077274313
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