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fin 305 ch 11 q 17 An all-equity firm is considering the projects shown below. The T-bill rate is 6 percent and the market risk
fin 305 ch 11 q 17
An all-equity firm is considering the projects shown below. The T-bill rate is 6 percent and the market risk premium is 7 percent.
PROJECT | EXPECTED RETURN | BETA | |||||
A | 10 | % | 0.5 | ||||
B | 23 | 1.6 | |||||
C | 18 | 1.8 | |||||
D | 21 | 2.0 | |||||
Calculate the project-specific benchmarks for each project. (Round your answers to 2 decimal places.) |
Project A | % |
Project B | % |
Project C | % |
Project D | % |
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