assignment 2

Q12.

1. 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