Question
A project requires an investment of $200 million today and will generate in a year $300 million or $150 million with 0.6 and 0.4 probability,
A project requires an investment of $200 million today and will generate in a year $300 million or $150 million with 0.6 and 0.4 probability, respectively. The risk-free rate is 5% and the Market risk premium is 7%. The project's systematic risk coefficient is 1.5.
The project's discount rate (required return) is:
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Better Than Alpha Three Steps To Capturing Excess Returns In A Changing World
Authors: Christopher M. Schelling
1st Edition
1264257651,126425766X
