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An investment analyst has estimated the beta () of the project at 1.3. The risk free rate is 3.5% pa and the risk premium on
An investment analyst has estimated the beta () of the project at 1.3. The risk free rate is 3.5% pa and the risk premium on shares is currently 10% pa. Explain whether the directors should focus on the projects beta or its standard deviation (as calculated which is 9.5) in their assessment of the projects viability
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