Question
A project has an expected cash flow of $1.5 million one year from now. If the expected return of the market portfolio is 12%, the
A project has an expected cash flow of $1.5 million one year from now. If the expected return of the market portfolio is 12%, the risk free is 6%, correlation between this future cash flow and the return on the market is 0.75. What is the present value of the cash flow?
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Cases In Financial Reporting
Authors: Ellen Engel, D. Eric Hirst, Mary Lea McAnally
7th Edition
1934319791, 9781934319796
