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A project under consideration has an internal rate of return of 15% and a beta of 0.8. The risk-free rate is 5%, and the expected
A project under consideration has an internal rate of return of 15% and a beta of 0.8. The risk-free rate is 5%, and the expected rate of return on the market portfolio is 15%. a-1. Calculate the required return. Required return a-2. Should the project be accepted? Yes NO b-1. Calculate the required return if its beta is 1.8. Required return b-2. Should the project be accepted? Yes NO
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