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Bettys analysis requires estimated betas for NFPs five divisions. Suppose she did not feel comfortable with beta analysis. Could divisional (and project) hurdle rates be
Bettys analysis requires estimated betas for NFPs five divisions. Suppose she did not feel comfortable with beta analysis. Could divisional (and project) hurdle rates be established using total risk analysis? If so, describe how this might be done. (Hint: The risk of divisions (and projects) can be viewed on a stand-alone basis or on a within-firm basis, which treats the firm as a portfolio of assets.)
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