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both parts please! (a) rate is 4.5% and market portfolio is 9% (b) beta is 0.7 You are considering acquiring firm that you believe con
both parts please!
(a) rate is 4.5% and market portfolio is 9%
You are considering acquiring firm that you believe con generate expected cash flow of $10,000 a year for years, the generate $10,000 forever. However, you recognise that those cash flows are uncertain Suppow you believe that the beta of the firm is 18. How much is the firm wore i meniskywe raw us and the expected rate of return on the market portfolio ON by how much will you are the firm is bele is actually a 77 (b) beta is 0.7
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