Question
assignment 2 Q12. Revlon is considering a new project. The expected return on the project is 20%. Revlon believes that the project has a beta
assignment 2
Q12.
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Revlon is considering a new project. The expected return on the project is 20%. Revlon believes that the project has a beta of 1.80. The T-bill rate is 5% and the return on the S&P 500 (market) is 15%. Will Revlon take the project? Why or why not?
A. No. Expected return > required return
B. No. Expected return < required return
C. Yes. Expected return > required return
D. Yes. Expected return < required return
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Managerial Accounting
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
12th Edition
9780073526706
