Question
A project under consideration has an internal rate of return of 12% and a beta of 0.6. The risk-free rate is 4% and the expected
A project under consideration has an internal rate of return of 12% and a beta of 0.6. The risk-free rate is 4% and the expected rate of return on the market portfolio is 9%.
a. Should the project be accepted?
| (Click to select) No Yes |
b. Should the project be accepted if its beta is 1.8?
| (Click to select) No Yes |
c. Does your answer change?
| (Click to select) No Yes |
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Islamic Finance Law Economics And Practice
Authors: Mahmoud A. El-Gamal
1st Edition
0521864143,0511218117
