Question
A project under consideration has an internal rate of return of 13% and a beta of 0.4. The risk-free rate is 3%, and the expected
A project under consideration has an internal rate of return of 13% and a beta of 0.4. The risk-free rate is 3%, and the expected rate of return on the market portfolio is 13%.
a. What is the required rate of return on the project? (Do not round intermediate calculations. Enter your answer as a whole percent.)
b. Should the project be accepted?
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Yes
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No
c. What is the required rate of return on the project if its beta is 1.50? (Do not round intermediate calculations. Enter your answer as a whole percent.)
d. Should the project be accepted?
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