Question
Assuming the risk-free rate is 2% and the expected return on the market portfolio is 10%. A firm considers a project with an estimated beta
Assuming the risk-free rate is 2% and the expected return on the market portfolio is 10%. A firm considers a project with an estimated beta of 1.5. If the IRR of the project is 10.2%, what is the project alpha?
| A. | 1.2%.
| |
| B. | 0.7%.
| |
| C. | 0.4%.
| |
| D. | 0.2%.
|
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Multinational Finance
Authors: Kirt C. Butler
3rd Edition
0324177453, 978-0324177459
