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Assume the CAPM holds. The T-bill YTM is 2.3%. The T-bond YTM is 6.7%. The expected rate of return on the market is 8.2%. What
Assume the CAPM holds. The T-bill YTM is 2.3%. The T-bond YTM is 6.7%. The expected rate of return on the market is 8.2%. What is the appropriate cost of capital for a long-term project that has a beta of 0.9? Give your answer in percentage to the closest 0.1 percent.
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